Indonesian Political, Business & Finance News

Trump tariff policy challenged by 24 U.S. states

| | Source: REPUBLIKA Translated from Indonesian | Trade
Trump tariff policy challenged by 24 U.S. states
Image: REPUBLIKA

REPUBLIKA.CO.ID, TOKYO – As many as 24 states in the United States are suing President Donald Trump over a new global tariff of 10 percent, which they say fails to meet legal requirements. The lawsuit, led by attorneys general and Democratic governors, was filed in the U.S. Court of International Trade on Thursday (5 March 2026). Meanwhile, Trump plans to raise the tariff to 15 percent as early as this week. On 20 February, the Supreme Court ruled that Trump exceeded his presidential authority when using the International Emergency Economic Powers Act to impose retaliatory tariffs on many countries, and levies related to fentanyl on goods from China, Canada, and Mexico. According to Kyodo News, Trump did not obtain Congressional approval before implementing the tariff, although taxation powers are constitutionally vested in the legislative branch. In the latest suit, the plaintiffs say that the Republican president ‘has once again invoked tariff powers he does not possess,’ thereby ‘undermining the constitutional order and sowing chaos in the global economy.’ The 10 percent tariff targeting a broad swath of imports took effect on February 24 under Section 122 of the Trade Act of 1974. The rule allows the president to impose tariffs of up to 15 percent for up to 150 days to address a balance-of-payments deficit that is ‘large and serious.’ No president has previously used that section to impose tariffs. The plaintiffs also argue that Trump’s interpretation of the rule is incorrect. They note that the US trade deficit is merely one component of the balance of payments, but Trump is accused of twisting the term. States filing the suit include California, Colorado, Illinois, Oregon, Maryland, New York, and Virginia. US Treasury Secretary Scott Bessent said on Wednesday that the government is likely to raise the global tariff temporarily to 15 percent this week. He also hinted that the administration is preparing more permanent tariffs for each country under Section 301 of the Trade Act. That provision allows the US to impose tariffs in response to unfair foreign trade practices. Trump previously used that provision to raise tariffs on Chinese goods when he launched a trade war with that country during his first term.

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