Vermont Attorney General Charity Clark joined a coalition of attorneys general on Mar. 13 in filing a motion seeking to halt the implementation of President Trump’s latest tariffs on products purchased by American consumers and businesses. The coalition’s motion asks the U.S. Court of International Trade for summary judgment or, alternatively, a preliminary injunction against the tariffs.
The issue centers around President Trump’s recent efforts to impose a 10 percent tariff on most products worldwide. According to the coalition, these actions are based on Section 122 of the Trade Act of 1974, which has not previously been used in this manner. The attorneys general argue that Section 122 only permits such tariffs when there are “large and serious balance-of-payment deficits,” which they say is not currently the case since a trade deficit does not equate to a balance-of-payment deficit.
Previously, President Trump attempted to use the International Emergency Economic Powers Act as justification for similar tariffs, but those efforts were ruled unlawful by the Supreme Court. Now, with this new legal approach, state governments from the 24 plaintiff states claim they will face at least $748 million per year in additional costs due to these tariffs. An economic analysis submitted with today’s court filing highlights this financial impact.
Further supporting their argument, researchers at the Federal Reserve Bank of New York found that nearly 90 percent of last year’s tariff costs were borne by American consumers and businesses.
The case is titled State of Oregon, et al., v. Trump, et al., and is pending before a three-judge panel at the U.S. Court of International Trade in New York City. Oral arguments on the states’ motion are scheduled for April 10 at 10:00 a.m., according to court documents.
A copy of today’s motion can be found on Vermont Attorney General Charity Clark’s website.
