Trump Tariffs: Following $100 Billion Refund, 25 States File 'Lawsuit'... Will It Be Thwarted Again?

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U.S. President Donald Trump's tariff policy has once again become embroiled in a large-scale lawsuit, following a $100 billion refund.

According to CNBC, an economic news outlet, on August 5 (local time), 25 U.S. states filed a lawsuit with the U.S. Court of International Trade, claiming that the new global tariffs imposed by the Trump administration are illegal. The state governments argued that the new tariffs are a circumvention to revive existing tariffs that were ruled invalid by the Supreme Court.

In February, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs. Subsequently, the U.S. Customs and Border Protection (CBP) refunded approximately $100 billion out of the $165 billion collected from the existing tariffs to importers. This accounts for approximately 60% of the total amount eligible for refund.

In place of the invalidated tariffs, the Trump administration introduced new tariffs based on Section 301 of the 1974 Trade Act. The tariff rates are 10-12.5% and apply to 59 countries and the European Union (EU). The states that filed the lawsuit pointed out that these tariffs affect 99.4% of U.S. imports.

New York Attorney General Letitia James criticized, stating, “After losing in the Supreme Court, the administration is illegally trying to raise taxes on households and businesses again with new tariffs.” The White House countered that it is a legitimate trade measure to block goods produced by forced labor.

The 25 states demanded that the Court of International Trade halt the imposition of new tariffs and confirm their illegality. They also claimed a refund for tariffs already paid. The legality of Section 301 of the Trade Act, which the Trump administration cited as its third legal basis, has emerged as a key issue that will determine the direction of tariff policy.

[Article Key Summary]

-The Trump administration refunded approximately $100 billion out of $165 billion in tariffs that were ruled invalid.

-25 U.S. states filed a lawsuit, claiming that the newly imposed 10-12.5% tariffs are a circumvention to revive existing policies.

-The states that filed the lawsuit demanded a halt to the new tariffs and a refund for tariffs already paid.

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