AsianFin-- A coalition of 12 U.S. states has collectively filed a lawsuit against the Trump administration, alleging that its tariff policies are unlawful. The case was heard in the U.S. Court of International Trade on May 21.

The plaintiffs argue that the Trump administration has made serious misinterpretations of the International Emergency Economic Powers Act (IEEPA), rendering the imposition of tariffs baseless. The IEEPA explicitly stipulates that a national emergency can only be declared under extraordinary and severe circumstances. They contend that the current U.S. trade situation does not meet this definition.

On the other hand, the defendants assert that tariffs are not merely a tax issue but a measure to regulate international trade. They argue that Trump has the authority to declare a state of emergency and implement measures, and the court does not have the power to interfere with these decisions.