Trump Faces Lawsuit From 12 States Over 'Unlawful' Tariffs Amid Waning Public Confidence Over President's Economic Moves

President Donald Trump, who faced many lawsuits while running for office, finds himself in legal crosshairs again — this time for his reciprocal tariffs, which have caused mayhem in the financial markets and threatened a recession.

A lawsuit has been filed by 12 states in the U.S. States Court of International Trade contesting the president's International Emergency Economic Powers Act (IEEPA), which he used to invoke the tariffs.

Earlier this month, Trump announced sweeping tariffs on all U.S. trading partners, including an across-the-board baseline 10% tariff and additional levies, which varied among nations.

The additional levies announced as part of his “Liberation Day” tariffs were later paused for 90 days for most nations except China.

The states' attorney generals contended that the text and history of IEEPA do not allow worldwide tariffs. 

“Because these tariffs are unlawful, this Court should declare that they are not in force, enjoin the Defendant agencies and officers from enforcing them, and vacate the agency actions implementing them,” the suit reads, contending that there is no precedence.

"In the nearly five decades since IEEPA was enacted, no other President has imposed tariffs based on the existence of any national emergency, despite global anti-narcotics campaigns spearheaded by the United States and longstanding trade deficits."

The plaintiffs included the states of Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont.

As part of prayer relief, the plaintiffs requested that the court declare the IEEPA tariff orders as contrary to law and hold unlawful the Customs and Border Protection's (CBP) Cargo Systems Messaging Service regarding levies on imports from Canada, Mexico, and China. 

CNBC reported that the lawsuit comes after a three-judge panel denied a motion filed by five small businesses regarding the legality of the tariffs.

President Trump's approval has taken a beating amid the tariff fallouts. A Reuters/Ipsos poll conducted among 4,306 U.S. adults between April 16 and 21 found that only 37% of respondents approved of Trump's handling of the economy, down from 42% when he assumed office earlier this year.

That was his lowest-ever reading, considering his first four-year term that ended in 2020. But it was better than predecessor Joe Biden's lowest-ever rating of 32% in January 2023.

Trump's job approval rating fell to 42%, the lowest yet in his second term.

The SPDR S&P 500 ETF (SPY) exchange-traded fund (ETF) ended Wednesday's session up 1.55% at $535.42 and the Invesco QQQ Trust (QQQ) ETF jumped 2.27% at $454.56.

Yet the SPY and QQQ, are now down over 8.4% and 11%, respectively, for the year-to-date period. 

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