A coalition of 24 states, led by Oregon Attorney General Dan Rayfield, has taken legal action against President Donald J. Trump to block the enforcement of newly imposed tariffs on consumer goods. Filed in the U.S. Court of International Trade, the lawsuit claims that the president lacks the legal authority to impose these tariffs, which are described as illegal and harmful to American consumers and businesses.
The case, titled Oregon et al. v. Donald J. Trump et al., requests a summary judgment or a preliminary injunction to prevent the implementation of tariffs that could amount to 10% on most products. Rayfield emphasized the financial burden these tariffs impose, stating, “Oregon families are paying more for groceries and other basic items because of these tariffs, and they shouldn’t be.” The coalition aims to reclaim tariff powers that they argue should reside with Congress.
According to the lawsuit, the president has improperly invoked the International Emergency Economic Powers Act to impose tariffs on essential goods for over a year. Recently, he attempted to utilize a provision of the Trade Act of 1974, specifically Section 122, which permits tariffs only in cases of “large and serious balance-of-payment deficits.” The states contend that no such deficit exists currently, and they argue that a trade deficit does not equate to a balance-of-payment deficit.
Economic analyses included in the lawsuit indicate that the 24 plaintiff states could incur additional costs of at least $748 million annually due to these tariffs. Research from the Federal Reserve Bank of New York corroborates this, revealing that nearly 90% of last year’s tariff costs were borne by American consumers and businesses.
The coalition has requested that the three-judge panel of the U.S. Court of International Trade order federal agencies to cease the collection of these tariffs. An in-person oral argument is scheduled for 10:00 a.m. EDT on April 10, 2026, in New York City.
Oregon’s trade situation has already deteriorated, with federal data showing a significant shift from a $5.7 billion surplus in 2024 to an approximate $2.7 billion deficit in 2025. This marked the state’s first annual goods deficit since at least 2008, as the impact of the tariffs took hold. Exports to Canada and Mexico saw substantial declines of 33% and 26% respectively, while total exports fell by 17.3%.
The filing comes after Oregon joined 18 other governors in urging Congress to reclaim the power to impose tariffs, further highlighting the coalition’s commitment to addressing the adverse economic effects of these policies. As the case moves forward, the implications for consumers and businesses alike will be closely monitored, illustrating the ongoing tension between state interests and federal authority in the realm of trade policy.
