New York leads multistate lawsuit against Trump tariffs

Key Takeaways

• Twelve states sue Trump administration, calling tariffs illegal and economically harmful
• Lawsuit claims executive-imposed tariffs bypassed Congress and violated constitutional limits
• Tariffs threaten inflation, job loss, and higher costs for families, small businesses, and states

A coalition of twelve states led by New York has filed a sweeping lawsuit against the Trump administration, alleging that a wave of unilaterally imposed tariffs constitutes an illegal tax hike on American consumers, businesses, and governments.

The suit, filed by New York Attorney General Letitia James and joined by attorneys general from eleven other states, argues that the Trump administration violated constitutional and statutory limits by bypassing Congress and implementing tariffs via executive orders, agency directives, and social media posts.

The President cannot raise taxes on a whim

At the heart of the lawsuit is the argument that President Trump exceeded his legal authority. Donald Trump promised to lower prices and ease the cost of living, but these illegal tariffs will do the opposite, James said. They are unconstitutional and economically reckless.

Governor Kathy Hochul joined in support of the suit, saying New York is fighting back against the largest federal tax hike in American history, which she said could push the country into a recession.

The states are seeking a court order to block the tariffs and prevent the Trump administration from enforcing them further. The lawsuit targets a broad range of tariffs, including some that were paused on April 9, and even those affecting non-trading regions, such as the Heard and McDonald Islands, which have no permanent human population.

Tariffs’ reach and fallout

Since February, the Trump administration has expanded tariffs to cover nearly every trading partner. These moves, according to the lawsuit, violate the International Emergency Economic Powers Act (IEEPA), which only allows such measures in response to extraordinary threats or national emergencies thresholds the states say were not met.

The economic impact could be severe. Economists cited in the filing estimate that the tariffs could cost the average American family thousands of dollars per year. A report from the New York City Comptroller warns that even a mild recession tied to the tariffs could lead to 35,000 job losses in NYC alone, while New York state agencies could face over $100 million in increased procurement costs.

Small businesses and local institutions are already feeling the strain. In Central New York, the Cortland Standard newspaper, one of the nations oldest family-owned publications, announced plans to cease operations, citing fears over a tariff on newsprint.

Retaliation and energy impacts

Retaliatory tariffs, especially from key trade partners like Canada, could have additional ripple effects. New York imports hundreds of millions of dollars in electricity from Canada, and higher tariffs could spike consumer energy bills across the state.

The lawsuit underscores a broader concern: that executive overreach in trade policy could destabilize economic planning at all levels from household budgets to state agencies.

The coalition includes attorneys general from Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont, marking a broad, multiregional push to rein in presidential power on trade and protect residents from what they argue is a self-inflicted economic wound.

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