Overview
- Attorneys general from twelve states argue that President Trump misused the International Emergency Economic Powers Act (IEEPA) to justify his 'Liberation Day' tariffs.
- The states claim that the U.S. trade deficit does not constitute an 'unusual and extraordinary threat' required to declare a national emergency under IEEPA.
- Trump's tariffs, which include a 10% baseline rate and up to 50% for certain countries, have raised consumer prices and cost households thousands annually, according to critics.
- The Justice Department contends that the lawsuit should be dismissed, arguing that only Congress can challenge the president's emergency declaration under IEEPA.
- The Court of International Trade's decision, expected in the coming weeks, could set a precedent for judicial oversight of executive authority in economic emergencies.