TRENTON, N.J. — A federal court has ruled that tariffs imposed by former President Donald Trump under the Trade Act of 1974 were unlawful, siding with New Jersey and a coalition of 23 other states challenging the policy.
Attorney General Jennifer Davenport announced Thursday that the U.S. Court of International Trade granted summary judgment in favor of the states and invalidated the tariffs.
The ruling struck down tariffs imposed under Section 122 of the Trade Act of 1974, which Trump used to place 10% tariffs on many imported products worldwide in response to trade deficits.
“We are grateful that the court has agreed with us that the President cannot unilaterally impose these plainly unlawful tariffs, which drive up costs and make life less affordable for hardworking New Jerseyans,” said Attorney General Davenport. “Our office will continue to do everything in our power to lower costs for New Jersey families—even as the Trump Administration is intent on doing the opposite.”
According to Davenport’s office, Trump had previously attempted to impose tariffs through the International Emergency Economic Powers Act before the U.S. Supreme Court ruled those tariffs unlawful.
The administration later turned to Section 122 of the Trade Act, a provision that had never previously been used to impose broad tariffs, according to the lawsuit.
The Court of International Trade ruled that Section 122 only permits tariffs in cases involving “large and serious balance-of-payment deficits,” finding that trade deficits cited by the administration did not meet that legal standard.
As part of its ruling, the court stated that the tariff proclamation “is invalid, and the tariffs imposed on Plaintiffs are unauthorized by law.”
New Jersey joined the lawsuit alongside attorneys general from Oregon, Arizona, California, New York and numerous other states, as well as the governors of Kentucky and Pennsylvania.
