In a bold move, Governor Kathy Hochul and Attorney General Letitia James announced that New York, along with a coalition of 11 other states, is taking legal action against the Trump Administration, claiming that the newly instituted tariffs are illegal.
The lawsuit contends that the tariffs imposed on various trading partners will lead to a spike in unemployment, an increase in inflation, and pose a significant threat to American wages by hampering economic growth.
Hochul emphasized that these tariffs will adversely affect consumers by making essential goods, from electronics to building materials, more expensive and harder to find.
“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 Hochul.
Highlighting her partnership with James, Hochul stated that this litigation represents a stand for New York consumers, stressing the need to prevent Trump from driving the nation into a recession.
The tariffs, which were enacted under the International Emergency Economic Powers Act (IEEPA), are described in the lawsuit as tax hikes that burden Americans.
“The Trump administration’s IEEPA tariffs raise taxes on imports from nearly every country on earth, including America’s closest allies and trading partners, and they have already caused severe economic damage,” Hochul remarked.
She continued, clarifying that Congress did not authorize the president to impose these tariffs. Hence, the administration violated legal protocols through executive orders, social media statements, and agency directives.
The coalition seeks a judicial order to halt the IEEPA tariffs, which were previously paused on April 9, and to prevent the Trump administration from enforcing or implementing these measures in the future.
Since February, President Trump has introduced tariffs against some of the U.S’s closest partners in trade. Hochul revealed that these tariffs, announced in a series of updates in April, have now expanded to cover nearly every country globally, even targeting territories like the Heard and McDonald Islands, which lack any human inhabitants.
“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,” Attorney General James asserted.
She criticized Trump’s campaign promises to reduce prices and alleviate living costs, stating, “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.”
Earlier this month, Trump issued an executive order concerning the tariffs, asserting a national emergency based on a perceived threat to the nation’s economy stemming from bilateral trade relationships and economic policies of various trading partners.
The lawsuit filed in the United States Court of International Trade argues that President Trump lacks the authority to impose such tariffs. It noted that while invoking the IEEPA to justify these actions, no other president has exercised this law to impose tariffs as broadly or indiscriminately in over fifty years.
The coalition argues that the IEEPA was not designed to allow the president unilateral control over global tariffs. Furthermore, they claim the administration has overstepped its bounds and violated both the law and the Constitution by enacting these tariffs without proper authority.
The legal action seeks a court ruling that declares the IEEPA tariff orders from the Trump administration to be unlawful and mandates the cessation of their implementation and enforcement.
The economic implications of these tariffs on New York residents are significant. Economists estimate that families could face increased costs amounting to thousands of dollars annually. A report from the New York City Comptroller predicts that even a mild recession triggered by these tariffs could result in over 35,000 job losses within New York City.
Additionally, Hochul’s office warns that state agencies could confront over $100 million in extra costs due to the heightened prices from tariffs.
Joining New York in this legal battle are the attorneys general from Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont.
Hochul noted that she has been actively communicating with federal leaders regarding the detrimental effects these tariffs could have on New York’s residents, businesses, and the overall economy.
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