New York AG Letitia James Leads Lawsuit Against Trump Over 'Reckless' And 'Unconstitutional' Tariffs, Challenging Presidential Power

President Donald Trump has been sued by 12 states over his "unconstitutional" new tariffs on foreign imports. Filed in the U.S. Court of International Trade, the lawsuit argues that Trump surpassed his authority by instituting tariffs under the International Emergency Economic Powers Act (IEEPA). California filed a similar but separate lawsuit last week.

What Happened: Led by New York Attorney General Letitia James, the lawsuit states that the president does not have the power to unilaterally impose tariffs. The tariffs in question entail a 145% tax on Chinese goods, 25% on imports from Canada and Mexico, and 10% on products from other countries.

The states contend that no president has employed IEEPA to levy tariffs and that such acts violate the Constitution, which gives Congress the power to impose taxes. Arizona Attorney General Kris Mayes said that the tariffs are “economically reckless” and a “tax” to be borne by consumers, according to CNBC.

James has been a key figure in challenging Trump, leading investigations into his business practices. Her efforts led to a $2 million settlement over allegations of inflated asset values by the Trump Organization.

See Also: Trump Softens On Tariffs — Stock Futures Rise, Nikkei Opens Higher, Dollar Still Under Pressure

Why It Matters: The lawsuit could have major implications on how presidential power is exercised in the future.

"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 suit says.

If the lawsuit is successful, this case could restrict future use of executive power in trade policy, possibly reconfiguring U.S. tariffs and trade relations.

The White House has not commented on the lawsuit yet.

Earlier this month, five U.S. small businesses sued Trump in federal court, claiming that he misused emergency powers to impose trade tariffs despite there being a legitimate national emergency.

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