The lawsuit was filed on Thursday in the Court of International Trade in New York. The initiators were the authorities of Oregon, California, Arizona and New York, which received the support of 20 other states run by Democrats.
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Court documents indicated that Donald Trump violated the law by imposing global tariffs after his earlier tariffs were invalidated under the IEEPA sanctions bill. Prosecutors argue that the president's actions violate the constitutional separation of powers.
The Trump administration imposed tariffs on goods from around the world using Section 122 of the 1974 Trade Act. The current rate is 10 percent, but announcements indicate a planned increase to 15 percent.
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The legal mechanism used allows for the establishment of global tariffs up to a maximum of 15%. for a period of 150 days, which may be extended only by a decision of Congress. The basis is to be actions in response to the “serious and large balance of payments deficit”.
States question the legal basis of Trump's tariffs
The key argument of the plaintiff is the distinction between trade deficit and balance of payments deficit.
“It is worth noting that the trade deficit is not a balance of payments deficit, which means that the president is once again acting illegally,” reads a statement from Oregon Attorney General Dan Rayfield.
Most experts share the opinion that a negative balance of payments in the sense of the 1970s, when the dollar was no longer convertible into gold, does not apply to current economic conditions.
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However, it remains uncertain whether courts will decide to question the federal authorities' motivation and findings. The administration used these provisions in practice for the first time.
