Arizona Attorney General Kris Mayes, alongside a broad coalition of state leaders, filed a lawsuit in the U.S. Court of International Trade to stop the Trump administration’s latest round of global tariffs. The legal challenge, titled State of Oregon, et al., v. Trump, et al., argues that the President is overstepping his constitutional authority by bypassing Congress to hike taxes on imported goods.
The lawsuit follows a recent Supreme Court ruling that struck down the administration’s previous attempt to use the International Emergency Economic Powers Act (IEEPA) for broad trade levies.
In response to that defeat, the White House has now invoked Section 122 of the Trade Act of 1974 to impose 15 percent tariffs on most worldwide products. The states argue this shift is a legal reach, as Section 122 is intended for “balance-of-payments” deficits—a specific financial metric they claim does not apply to standard trade deficits.
“After being rebuked by the Supreme Court for illegally taxing the American people, Donald Trump threw a temper tantrum and announced another round of illegal tariffs that will hurt Arizonans,” Mayes stated. “Make no mistake—these tariffs are just another unlawful attempt to tax Arizona families and businesses without the consent of their elected representatives and they will drive up prices for every Arizonan.”
Data from the Federal Reserve Bank of New York indicates that nearly 90 percent of tariff costs in 2025 were absorbed by American businesses and consumers rather than foreign exporters.
According to Mayes, in Arizona alone, experts estimate previous IEEPA tariffs resulted in a $1.6 billion hit to the local economy. National figures from the Tax Foundation suggest a 10 percent universal tariff adds roughly $1,253 to the average household’s annual expenses, while a 20 percent levy could push that cost to $2,045.
The coalition, co-led by Oregon, California, and New York, includes 23 attorneys general and the governors of Kentucky and Pennsylvania.
Their complaint alleges the administration’s actions violate the Administrative Procedure Act and undermine the separation of powers by seizing taxing authority reserved for the legislative branch.
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