Trump sued by states over tariffs, trade policy
The states allege the tariffs amount to a massive tax on American consumers. PHOTO: AFP
WASHINGTON – A dozen US states are challenging President Donald Trump's 'immense and ever-changing' global tariffs in court, alleging he illegally bypassed Congress by issuing duties under an emergency economic law.
The suit, filed on April 23 in the US Court of International Trade in Manhattan, argues that Congress didn't grant Mr Trump the necessary authority to impose the tariffs and that national trade policy 'now hinges on the president's whims rather than the sound exercise of his lawful authority.'
Mr Trump 'has upended the constitutional order and brought chaos to the American economy,' the group, which includes New York, Illinois and Arizona, said in the complaint.
The suit follows a handful of others – filed by California, small businesses and members of the Blackfeet Nation tribe in Montana – that all make similar claims.
It seeks a court order halting the tariffs, including the worldwide levies Mr Trump paused on April 9.
The states allege the tariffs amount to a massive tax on American consumers.
'The president does not have the power to raise taxes on a whim, but that's exactly what President Trump has been doing with these tariffs,' New York Attorney-General Letitia James said in a statement.
'Donald Trump promised that he would lower prices and ease the cost of living, but these illegal tariffs will have the exact opposite effect on American families.'
The complaint takes aim at Mr Trump's use of the International Emergency Economic Powers Act, which the president invoked for 'the most damaging of his tariffs,' according to the suit.
The states argue the law was passed five decades ago to prevent presidents from abusing emergency powers, and that it can only be invoked to respond to an 'unusual and extraordinary threat.'
Trade deficits and other issues cited by Mr Trump don't meet that standard, the states allege.
'The statutory requirement of an 'unusual and extraordinary threat' is not met by the president's declaration of emergency accompanying the Worldwide Tariff Order,' the states said in the complaint.
'As the Worldwide Tariff Order acknowledges, 'annual US goods trade deficits' are 'persistent'; thus, by definition, they are not 'unusual and extraordinary.''
The suit comes a day after Mr Trump tuned down his tariff rhetoric against China, the world's second-biggest economy.
Global markets are still on edge, however, given how frequently Mr Trump has changed course on the matter.
The other states in the suit are Oregon, Colorado, Connecticut, New Mexico, Vermont, Nevada, Delaware, Minnesota and Maine. BLOOMBERG
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