State AGs Win Supreme Court Challenge Against Trump Tariffs

NY Attorney General Press Releases

Filed February 20th, 2026

Detected February 21st, 2026

Summary

The Supreme Court ruled in favor of 12 State Attorneys General, including New York's AG Letitia James, declaring the Trump administration's "emergency" tariffs imposed under IEEPA unlawful. This decision overturns tariffs that had disrupted the economy for businesses and workers.

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What changed

The United States Supreme Court has ruled that the Trump administration's "emergency" tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were unlawful. The ruling, which sided with a coalition of 12 State Attorneys General led by New York's AG Letitia James, found that the President does not have the authority to use IEEPA to impose such sweeping tariffs. This decision invalidates tariffs that had previously been challenged and affirmed as unlawful by lower courts, including the U.S. Court of International Trade and the U.S. Court of Appeals.

This Supreme Court victory means that the previously imposed tariffs are nullified. Businesses and importers that were subject to these tariffs will no longer be required to pay them. The ruling reinforces the principle that executive agencies cannot unilaterally impose significant taxes or tariffs without proper legislative authority, potentially impacting future executive actions related to trade and economic powers. Affected parties should review their trade compliance and financial records related to these tariffs.

Source document (simplified)

Attorney General James Wins Challenge to Trump Administration’s Tariffs

Supreme Court Rules in Favor of AG James and 11 Other States Declaring “Emergency” Tariffs Illegal

February 20, 2026

NEW YORK – New York Attorney General Letitia James today won a major victory after the United States Supreme Court ruled that sweeping tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) violate the law. The court ruled in favor of Attorney General James and a coalition of 11 other attorneys general who sued the Trump administration in April 2025 for violating the law by imposing massive new tariffs that severely disrupted the economy for workers and businesses.

“These illegal tariffs caused immense economic chaos, raising costs for families and businesses throughout our country,” said Attorney General James. “The Supreme Court has agreed that this administration has no authority to impose massive new taxes on a whim. This is a critical victory for the rule of law and our economy, and I will keep fighting to protect New Yorkers from destructive policies that make life less affordable.”

In April 2025, Attorney General James and the coalition sued the Trump administration for unlawfully imposing tariffs under IEEPA. In May, the United States Court of International Trade ruled in favor of Attorney General James and the coalition, deciding that the Trump administration’s tariffs issued under IEEPA are invalid. In August, the U.S. Court of Appeals affirmed that the Trump administration does not have the authority to impose these tariffs by executive order under IEEPA.

The Supreme Court today ruled that the president does not have the authority to use IEEPA to impose sweeping tariffs.

Joining Attorney General James in this challenge to the administration’s tariffs are the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont.