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Twelve states sue the Trump administration over ‘tax hikes' through tariffs

Twelve states sue the Trump administration over ‘tax hikes' through tariffs

CNN23-04-2025
Twelve states sued the Trump administration Wednesday for 'illegally imposing' tax hikes on Americans through tariffs.
Trump imposed the tariffs through the International Emergency Economic Powers Act (IEEPA), which gives the president the authority to enact those powers in response to unusual and extraordinary threats. The lawsuit seeks a court order to halt the tariffs under IEEPA, saying Trump does not have the authority he claims he does.
'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 lawsuit argued.
While Congress passed IEEPA, 'Congress never intended it to be used for tariffs,' the suit reads.
The coalition of states joins other groups that have sued the Trump administration on tariffs. A group of small US businesses filed a lawsuit last week over the administration's authority to impose tariffs, and New Civil Liberties Alliance (NCLA), a civil rights group, filed a complaint on similar grounds earlier in April.
In response to the small business lawsuit, White House spokesperson Harrison Fields previously said that trade deficits with other countries constitute a 'national emergency.'
The lawsuit is filed by the attorneys general of New York, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon and Vermont.
'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. His tariffs are unlawful and if not stopped, they will lead to more inflation, unemployment, and economic damage,' New York Attorney General Letitia James said in a press release.
The lawsuit, which was filed in the United States Court of International Trade, also seeks a court order to halt the impending worldwide reciprocal tariffs that were paused earlier in April. The coalition also argued that Trump has violated the Constitution and the Administrative Procedure Act.
Last week, California announced its own lawsuit against the Trump administration, also arguing the Trump administration lacked the authority to impose the tariffs and claiming it has caused 'irreparable harm to California, its Governor, and its residents.'
CNN has reached out to the White House for comment.
Matthew Kaufman contributed to this report.
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China Urges Firms to Avoid Nvidia H20 Chips After Trump Resumes Sales
China Urges Firms to Avoid Nvidia H20 Chips After Trump Resumes Sales

Yahoo

time12 minutes ago

  • Yahoo

China Urges Firms to Avoid Nvidia H20 Chips After Trump Resumes Sales

(Bloomberg) -- Beijing has urged local companies to avoid using Nvidia Corp.'s H20 processors, particularly for government-related purposes, complicating the chipmaker's return to China after the Trump administration reversed an effective US ban on such sales. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain A New Stage for the Theater That Gave America Shakespeare in the Park Over the past few weeks, Chinese authorities have sent notices to a range of firms discouraging use of the less-advanced semiconductors, people familiar with the matter said. The guidance was particularly strong against the use of H20s for any government or national security-related work by state enterprises or private companies, said the people, who asked not to be identified because the information is sensitive. The letters didn't, however, constitute an outright ban on H20 use, according to the people. Industry analysts broadly agree that Chinese companies still covet those chips, which perform quite well in certain crucial AI applications. President Donald Trump said Monday that the processor 'still has a market' in the Asian country despite also calling it 'obsolete.' Nvidia and Advanced Micro Devices Inc. both recently secured Washington's approval to resume lower-end AI chip sales to China, on the controversial and legally questionable condition that they give the US government a 15% cut of the related revenue. But even with Trump's team on board, the two companies face the challenge that their Chinese customers are under Beijing's pressure to purchase domestic chips instead. Beijing's overall push affects AI accelerators from AMD in addition to Nvidia, one of the people said, though it's unclear whether any letters specifically mentioned AMD's MI308 chip. Shares of Chinese AI chip designer Cambricon Technologies Corp. surged to their daily limit of 20% on the news of China's guidance, leading a rally in peers such as Semiconductor Manufacturing International Corp. Beijing's stance could limit Trump's ability to turn his export control about-face into a windfall for government coffers, a deal that highlighted his administration's transactional approach to national security policies long treated as nonnegotiable. Still, Chinese companies may not be ready to jump ship to local semiconductors. 'Chips from domestic manufacturers are improving dramatically in quality, but they might not be as versatile for specific workloads that China's domestic AI industry hopes to focus on,' said Homin Lee, a senior macro strategist at Lombard Odier in Singapore. Lee added that he anticipates 'strong' demand for the chips the Trump administration is allowing Nvidia and AMD to sell. Rosenblatt Securities analyst Kevin Cassidy said he doesn't anticipate that Nvidia's processor sales to China will be affected because 'Chinese companies are going to want to use the best chips available.' Nvidia and AMD's chips are superior to local alternatives, he said. Beijing asked companies about that issue in some of its letters, according to one of the people, posing questions such as why they buy Nvidia H20 chips over local versions, whether that's a necessary choice given domestic options, and whether they've found any security concerns in the Nvidia hardware. The notices coincide with state media reports that cast doubt on the security and reliability of H20 processors. Chinese regulators have raised those concerns directly with Nvidia, which has repeatedly denied that its chips contain such vulnerabilities. The Financial Times reported that some Chinese companies are planning to decrease orders of Nvidia chips in response to the letters. Right now, the people said, China's most stringent chip guidance is limited to sensitive applications, a situation that bears similarities to the way Beijing restricted Tesla Inc. vehicles and Apple Inc. iPhones in certain institutions and locations over security concerns. China's government also at one point barred the use of Micron Technology Inc. chips in critical infrastructure. It's possible that Beijing may extend its heavier-handed Nvidia and AMD guidance to a wider range of settings, according to one person with direct knowledge of the deliberations, who said that those conversations are in early stages. AMD declined to comment on Beijing's notices, while Nvidia said in a statement that 'the H20 is not a military product or for government infrastructure.' China has ample supplies of domestic chips, Nvidia said, and 'won't and never has relied on American chips for government operations.' China's Ministry of Industry and Information Technology and the Cyberspace Administration of China didn't respond to faxed requests for comment on this story, which is based on interviews with more than a half-dozen people familiar with Beijing's policy discussions. The White House didn't respond to a request for comment. The Chinese government's posture raises questions about the Trump administration's explanation for why the US is allowing those exports mere months after effectively banning such sales. Multiple senior US officials have said their policy reversal was the result of trade talks with China, but Beijing has publicly indicated that the resumed H20 shipments weren't part of any bilateral deal. China's recent notices to companies suggest that the Asian country may not have sought such a concession from Washington in the first place. Beijing's concerns are twofold. For starters, Chinese officials are worried that Nvidia chips could have location-tracking and remote-shutdown capabilities — a suggestion that Nvidia has vehemently denied. Trump officials are actively exploring whether location tracking could be used to help curtail suspected smuggling of restricted components into China, and lawmakers have introduced a bill that would require location verification for advanced AI chips. Second, Beijing is intensely focused on developing its domestic chip capabilities, and wants Chinese companies to shift away from Western chips in favor of local offerings. Officials have previously urged Chinese firms to choose domestic semiconductors over Nvidia H20 processors, Bloomberg reported last September, and have introduced energy efficiency standards that the H20 chip doesn't meet. Nvidia designed the H20 chip specifically for Chinese customers to abide by years of US restrictions on sales of its more advanced hardware, curbs designed to limit Beijing's access to AI that could benefit the Chinese military. The H20 chip has less computational power than Nvidia's top offerings, but its strong memory bandwidth is quite well suited to the inference stage of AI development, when models recognize patterns and draw conclusions. That's made it a desirable product to companies like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. in China, where domestic chip champion Huawei Technologies Co. is struggling to produce enough advanced components to meet market demand. By one estimate from Biden officials — who considered but did not implement controls on H20 sales — losing access to that Nvidia chip would make it three to six times more expensive for Chinese companies to run inference on advanced AI models. 'Beijing appears to be using regulatory uncertainty to create a captive market sufficiently sized to absorb Huawei's supply, while still allowing purchases of H20s to meet actual demands,' said Lennart Heim, an AI-focused researcher at RAND, of China's push for companies to avoid American AI chips. 'This signals that domestic alternatives remain inadequate even as China pressures foreign suppliers.' 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'As the Chinese deliver their magnets, then the H20s will come off,' Lutnick said last month. Treasury Secretary Scott Bessent said in late July that the magnet issue had been 'solved.' The first Nvidia H20 and AMD MI308 licenses arrived a bit over a week after Bessent's declaration — after Nvidia Chief Executive Officer Jensen Huang met with the president and both companies agreed to share their China revenue with the US government. --With assistance from Yanping Li, Sangmi Cha and Emily Forgash. (Updates with additional analyst commentary in ninth paragraph.) Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results The Game Starts at 8. The Robbery Starts at 8:01 Klarna Cashed In on 'Buy Now, Pay Later.' Now It Wants to Be a Bank ©2025 Bloomberg L.P. 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"America, You Are In Grave Danger": The Internet Is VERY Worried About Donald Trump's Disturbing Latest Move
"America, You Are In Grave Danger": The Internet Is VERY Worried About Donald Trump's Disturbing Latest Move

Yahoo

time12 minutes ago

  • Yahoo

"America, You Are In Grave Danger": The Internet Is VERY Worried About Donald Trump's Disturbing Latest Move

The American public has grown increasingly concerned about President Donald Trump's moves toward authoritarianism and autocracy as he positions himself as being above the law and frequently mentions not leaving office at the end of his Constitutionally-granted second and final term. During a press conference on Monday morning, Trump announced a sweeping plan by his administration to increase its control over law enforcement in the United States capital city of Washington, DC. Washington, DC, is the capital city and the federal district of the US, but is not an incorporated state or part of one. Jurisdiction over DC belongs to Congress. He started the press conference with a comment on how crowded the room is, saying they need a ballroom instead. Attorney General Pam Bondi grinned along. Trump launches into the topic of the press conference. "And we're here for a very serious purpose. Very serious purpose. Something is out of control, but we're gonna put it in control very quickly, like we did on the southern border," he said. "I'm announcing a historic action to rescue our nation's capital from crime, bloodshed, bedlam, and squalor. And worse." Related: "This is Liberation Day in DC, and we're gonna take our capital back," Trump said. "We're taking it back." He announced his plan: "Under the authorities vested in me as the president of the United States, I'm officially invoking Section 740 of the District of Columbia Home Rule Act — you know what that is — and placing the DC Metropolitan Police Department under direct federal control." "In addition, I'm deploying the National Guard to help reestablish law, order, and public safety in Washington, DC and they're gonna be allowed to do their job properly," Trump continued. He then directly addressed the journalists in the room about the supposed crime hotbed of DC, saying, "You people are victims of it, too." President Trump then said that "The murder rate in Washington today is higher than that of Bogota, Colombia, Mexico City, some of the places that you hear about as being the worst places on Earth," as Defense Secretary Pete Hegseth nodded along. "The number of car thefts has doubled over the past five years, and the number of carjackings has more than tripled," Trump said. "Murders in 2023 reached the highest rate probably ever." "Our capital city has been overtaken by violent gangs and bloodthirsty criminals, roving mobs of wild youth, drugged-out maniacs, and homeless people. And we're not gonna let it happen anymore. We're not gonna take it," Trump told the crowd. He then repeated that the problem would be treated like the southern border, which he said "nobody comes to" anymore. For clarity, the Justice Department reported early this year that violent crime in Washington, DC, is down 35% from 2023. According to the DC Metropolitan Police Department, the very agency that Trump is seeking to federalize, violent crime is currently down 26% year-over-year. "We are not experiencing a spike in crime," DC mayor Muriel Bowser told MSNBC on Sunday. "In fact, we're watching our crime numbers go down." Related: Richard Stengel, author and former government official under President Barack Obama, said that, "Throughout history, autocrats use a false pretext to impose government control over local law enforcement as a prelude to a more national takeover." People quickly hopped on Reddit's r/politics to discuss the CNBC article about Trump's announcement (you can watch the full press conference here). This is what some of the over 3,000 commenters had to say: 1."Federalizing the DC Police under fake numbers... Literally watching fascism unfold before our eyes, people. It's past time to get pissed." —thedrizztman 2."I thought he said he couldn't deploy the National Guard on January 6? So now we know he could have, but didn't because it was his people." —swiftfoot_hiker 3."This is the big red flashing sign of fascism for anyone still wondering." —ImperatorUniversum1 Related: 4."Every word out of this MF'er's mouth is a LIE. EVERY WORD. Taking over DC is to keep protestors out because this administration's next actions will be brutal." —mhouse2001 5."Martial law in motion. MF didn't even bother to stage a Reichstag fire." —alloutofchewingum 6."Here we fucking go. And sweet Jesus, it's only August of year one..." —KingMario05 7."This is the death of the republic we're watching. Temporary takeovers have a very long history of becoming permanent. We're so fucked." —Violent_Mud_Butt 8."So, he could have done this to put down the insurrection at the Capitol?" —aeppelcyning 9."This is a pretext for something. His excuse is the homeless — what I really think he's preparing for are protests or maybe even riots. Maybe connected to the upcoming 'peace talks' with Russia, or the Epstein scandal." —rainghost 10."So that's it. No more freedom or rule of law in the US. And all the flag-waving Trump supporters don't care. Not a peep from them." —Large-Phase9732 11."So I assume DC residents won't be able to vote ever again." —V_T_H Related: 12."Full fucking stop. Yes, this is a distraction attempt from Epstein, among other things, but this is a pilot program for doing this in other major cities around America. This is the next step in a full fascist takeover of this country. But hey, eggs are... I mean, gas is... I mean, Kamala's laugh." —spqr2001 13."We are going to find out if the military is going to uphold their oath to defend us from all enemies, foreign and domestic. Trump is the biggest domestic terrorist I've seen in this country in my lifetime." —Ol_Turd_Fergy 14."That's it folks. Democracy in the US is now over. What a shameful country." —boringfantasy 15."Authoritarianism it is then, I guess." —Jonny_Segment 16."Correct me if I'm wrong, but I could have sworn that Trump had no authority to do this. I mean, that's what he said for January 6. He said that the Speaker of the House needs to make this call. Could he have been lying?" —dydski 17."Is this about homeless people? What is this about? Those National Guard are gonna be real sad when they realize a ton of the homeless individuals they are arresting are vets." —Resident_Standard437 finally, "America, you are in grave danger. An authoritarian is seizing power over the police, based on a made-up emergency. This is a precursor to stealing the elections. It's the only thing left between them and ruling forever. They are stealing our democracy and do not plan to give it back. And all of you are silent. The republic is dying, rapidly and right before our eyes, and nothing is being done to stop it." —kevendo So, what do you think? Let us know in the comments. Also in In the News: Also in In the News: Also in In the News:

Get a manicure. Sing Monty Python. Be happy. You'll drive the Trumpists crazy
Get a manicure. Sing Monty Python. Be happy. You'll drive the Trumpists crazy

Los Angeles Times

time13 minutes ago

  • Los Angeles Times

Get a manicure. Sing Monty Python. Be happy. You'll drive the Trumpists crazy

As the psychiatrist Dr. Melfi says to Tony in the pilot episode of 'The Sopranos,' 'Hope comes in many forms.' I was reminded of this the other day when I found my finger glued to the hand of another woman. I had set out that morning to celebrate all the indications that the political plates of the Earth had shifted — millions of people at the No Kings marches, all the court cases that the White House keeps losing and Trump's Epstein nightmare. I wanted to immerse myself in the headway. Something's happening here. Those in charge want us to give up until the next election, but of course we are not going to, because we have children and nieces and nephews. The dark forces must be childless. They are not concerned about squeezing the life out of the Constitution, the rising oceans and the re-emergence of diseases long eradicated, because they are so bottomlessly stupid and greedy. And they are unaware of what happens when the autocracy overreaches. Every time. Think pitchforks. Tick-tock. This gives me a little hope. Hope comes in many forms: When I hear the songs of the civil rights movement at our marches, a soft gong sounds. The poet Jack Gilbert wrote, 'We must admit that there will be music despite everything.' Ever since I heard the author Caroline Myss say that when darkness and evil go nuclear, love and hope must go nuclear too, I started getting occasional manicures with glittery polish, to remind me. There was a nail salon in the first strip mall I passed. I went in. It seemed crowded, and I turned to leave. But the nearest manicurist said, 'Pick a color.' I said, 'No, no, you seem busy.' 'Pick a color!' she demanded, so I leapt to the polish station and picked a sparkly pale pink. An old woman came lumbering out from the back room toward me with a bowl of water. I dutifully fished out $25 from my purse, five of it tip, and put the fingers of one hand into the bowl of warm water. When one hand free, I scrolled through the links on my phone — the usual stuff, the government taking away health insurance from the poor and protecting American jobs by causing mass starvation around the world. The salon had grown incredibly hot. What hasn't? I smiled remembering Sen. Jim Inhofe tossing that snowball around on the Senate floor as proof that there is no global warming. God, the absurdity. Absurdity! A light bulb went on over my head in that salon. That's what we're missing. I realized that this was one solution to the cruel mess and the endless, depressing analysis. Yes, we will take to the streets at every opportunity, care for the poor and pick up litter. But we also, desperately, need to begin laughing again. And who does absurdity better than Monty Python? Monty Python says what we already know, that yes, it is all hopelessly stupid, cruel and unfair, but their making it silly delivers joy and buoyancy. We can grip our heads, fight back and laugh at it and them. And nothing agitates narcissists more than people laughing. Think of how confused our most prominent bullies get when people laugh at them. Bullies rule by fear. Humor is fearless, a bubbly form of hope. Remember the 'Upper Class Twit of the Year' award? And 'Self-Defense Against Fruit'? Aren't people in flag-draped lines voting to lose their health insurance and their basic rights reminiscent of folks queuing for crucifixion in 'Life of Brian'? The cheery, 'Line up on the left, one cross each'? Laughter and those jaunty songs break up the armor that we think protects us. When we're softened and jiggled, we're open to a shift from tight and clenched to the recognition of shared humanity, and underneath that a glimmer of shared possibility. When we don't see anything on the menu that we like, we can at least remember — as Monty Python taught us — that the Spam, egg, sausage and Spam sandwich has not got nearly as much Spam in it. I smiled, hearing the Spam song, right before my manicurist cut the skin at the base of the nail. I yelped. We both looked down at a drop of blood that was growing. She wrapped my finger in a Kleenex and pulled out a tiny tube I assumed was a styptic, and rubbed it over the cut. Then she pinched my finger between hers to stem the bleeding. After a minute, she tried to let go, which was the point at which I realized that this tube was super glue and that my finger was glued to her hand. She couldn't pry her fingers off. She started swabbing us with nail polish remover — not ideal for an open cut. I mewed like a kitten. It took a painful, burning minute to get us unglued. The bleeding was slowing down, and she stroked my hand while looking into my eyes kindly. Kindness is the antivenom. So we proceeded. I assumed that, the way things are going, I would die one day later this week of a fungal infection that went septic, but at least I would have beautiful nails, and Monty Python. I left her a second $5 tip. Hope comes in many forms: If you want to have hopeful feelings, do hopeful things. She touched her heart when she saw. Maybe I don't always remember my doctor's name, or how to spell the fuchsias that my husband grows, but I remember every word of 'The Lumberjack Song,' and of 'Every Sperm Is Sacred.' I hope we don't go crazy with the craziness around us. I can't remember a more terrifying time. I hope that we can keep centered, keep sharing what we have, help each other keep our spirits up, sing, register voters and rally, and maybe these are all we've got these days, but deep in my heart, I do believe that led with infinite dignity by the Ministry of Silly Walks, they will see us through. Anne Lamott, an author of fiction and nonfiction, lives in Marin County, Calif. Her latest book is 'Somehow: Thoughts on Love.' X: @annelamott

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