24 states, Nintendo sue Trump over tariffs as refund fight grows

Core Viewpoint - A coalition of 24 U.S. states has filed a lawsuit against the Trump administration, claiming that tariffs imposed were unlawful and seeking refunds, which could significantly impact U.S. trade policy and affect sourcing costs for various sectors [1][2]. Group 1: Lawsuit Details - The lawsuit was filed in the U.S. Court of International Trade, challenging tariffs imposed under Section 122 of the Trade Act of 1974, following a Supreme Court ruling that President Trump exceeded his authority with tariffs under the International Emergency Economic Powers Act (IEEPA) [2]. - The plaintiffs include states such as Arizona, California, and New York, among others, and the lawsuit names Trump and several federal officials as defendants [3]. - The states argue that the administration unlawfully imposed broad tariffs without congressional authorization, violating the Constitution [4]. Group 2: Legal Arguments - The states contend that the administration misused Section 122 to impose tariffs after the Supreme Court invalidated similar duties under IEEPA, with a 10% tariff on most imports initiated on February 24, and plans to increase it to 15% [5]. - State attorneys general assert that the law was intended for narrow use during balance-of-payments crises, which they argue do not exist currently, emphasizing that the Constitution grants Congress, not the President, the power to impose tariffs [6]. Group 3: Industry Impact - The states claim that the tariffs are already increasing procurement costs for state governments and raising prices on imported goods and components used by public agencies [6]. - Additionally, companies like Nintendo have joined the legal challenges, seeking refunds for tariffs paid on imported products, indicating a broader industry concern regarding the financial impact of these tariffs [7].