In a significant move, as many as twelve US states filed a lawsuit on Wednesday against the President Donald Trump-led administration with an aim to put a stop to its controversial tariff policy. The suit was lodged in the US Court of International Trade in New York, which argues that the tariff actions are unlawful and have thrown the American economy into turmoil.

The states allege that former President Donald Trump’s trade strategy has replaced structured policymaking with unpredictability, claiming the national trade policy has been steered by his “whims” rather than grounded in legal authority. Central to the lawsuit is a challenge to Trump’s use of the International Emergency Economic Powers Act, which, according to the lawsuit, does not give the President unchecked power to impose tariffs. The legal filing urged the court to declare the tariffs illegal and issue an injunction to prevent government agencies and officials from enforcing them.

List of states mentioned as plaintiffs in lawsuit:

• Arizona
• Colorado
• Connecticut
• Delaware
• Illinois
• Maine
• Minnesota
• New York
• Nevada
• New Mexico
• Oregon
• Vermont

What did the lawsuit contend?

Arizona Attorney General Kris Mayes minced no words in her criticism. In a strongly worded statement, she called Trump’s tariff strategy “insane”, adding, “It is not only economically reckless —  it is illegal.” The lawsuit maintained that only Congress has the power to impose tariffs and that the president can only invoke the International Emergency Economic Powers Act when an emergency presents an “unusual and extraordinary threat” from abroad. “By claiming the authority to impose immense and ever-changing tariffs on whatever goods entering the United States he chooses, for whatever reason he finds convenient to declare an emergency, the President has upended the constitutional order and brought chaos to the American economy,” the lawsuit said.

Trump’s new tariffs on several countries

It is to be noted here that Trump recently announced sweeping new reciprocal tariffs on several countries, including India. Highlighting the high tariffs imposed by India on American goods, Trump announced a “discounted reciprocal tariff” of 26 per cent on India, stressing his administration’s intent to address perceived trade imbalances. Holding up a chart during the event, Trump illustrated the disparities in tariffs levied by various nations such as India, China, the United Kingdom, and the European Union. The chart displayed how these countries would now be subjected to reciprocal tariffs by the US.