New York Attorney General Letitia James (D) filed a Wednesday lawsuit against the Trump administration with 11 other states alleging the president violated the law by imposing tariffs on global trading partners.
“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,” 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. His tariffs are unlawful and if not stopped, they will lead to more inflation, unemployment, and economic damage.”
Trump said the White House has the authority to implement tariffs under the International Emergency Economic Powers Act which permits the executive branch to investigate, block, prohibit or regulate any imports and exports with foreign countries in the case of an “unusual or extraordinary threat.”
The White House has cited the fentanyl opioid crisis as a qualifying “national emergency.”
However, the Wednesday lawsuit alleges the president would need the approval of Congress to increase taxes on imports and exports, referencing a claim originally flagged by The Wall Street Journal’s editorial board.
Connecticut, Arizona, Oregon, Vermont, Colorado, Maine, Illinois, Delaware, Minnesota, Nevada and New Mexico have all joined the lawsuit alleging the uptick in levies is illegal.
In court filings, James and other states said tariffs would cause a recession, pointing to statistics from a report by the New York City comptroller that new trade policies could lead to more than 35,000 lost jobs in the city, while state agencies could end up paying more than $100 million in extra costs due to tariffs increasing prices.
“President Trump’s reckless tariffs have skyrocketed costs for consumers and unleashed economic chaos across the country. New York is standing up to fight back against the largest federal tax hike in American history,” said New York Gov. Kathy Hochul (D).
“Attorney General James and I are partnering on this litigation on behalf of New York consumers, because we can’t let President Trump push our country into a recession.”
While the White House did not immediately respond to The Hill’s request for comment on tariffs, Trump and James have previously exchanged public criticisms.
“Letitia James, a totally corrupt politician, should resign from her position as New York State Attorney General, IMMEDIATELY. Everyone is trying to MAKE NEW YORK GREAT AGAIN, and it can never be done with this wacky crook in office,” the president wrote in a Truth Social post earlier this month.
In the days following Trump’s social media post, the Federal Housing Finance Agency made a criminal referral to the Justice Department against James, arguing she said a Virginia home was her primary residence to secure more favorable loan terms.
The measure came months after the New York attorney general launched a series of lawsuits against the Trump administration seeking to block executive orders that target birthright citizenship and other statutes.