California seeks court order to block Trump tariffs – states cite $748 Million in costs

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CALIFORNIA – California Attorney General Rob Bonta and Governor Gavin Newsom announced Thursday they filed a motion seeking to block President Donald Trump’s latest tariffs.

The state says the tariffs could cost 24 states, including California, New York and Oregon, at least $748 million annually.

The motion asks the court to grant summary judgment or issue a preliminary injunction to halt collection of the tariffs while the lawsuit proceeds.

The states filed the suit earlier this month challenging Trump’s global tariffs under Section 122 of the Trade Act of 1974, a never-before-used law.

Bonta said Trump has imposed “illegal tariff after illegal tariff” on the American people, burdening consumers and small businesses nationwide.

The President’s taxes are increasing prices amid a crisis of affordability and inflicting chaos on the American economy,” Bonta said.

The lawsuit argues the 10% tariffs are unlawful

Trump’s trade policy uses tariffs on imports, including a 10% duty imposed in early 2026, to protect U.S. manufacturing, boost domestic jobs and reduce trade deficits.

Critics argue the tariffs instead raise costs for American consumers and businesses.

Bonta said Trump has spent more than a year trying to impose unlawful tariffs on essential imported goods.

He and Newsom previously challenged tariffs imposed under the International Emergency Economic Powers Act of 1977. Last month, the U.S. Supreme Court struck them down as illegal.

Bonta said the president is now attempting to use Section 122 of the Trade Act of 1974 — a law never used before — to impose 10% tariffs on most products worldwide in response to trade deficits.

The news release says those tariffs are also illegal.

Section 122 allows tariffs only when “fundamental international payments problems” require special measures to address “large and serious balance-of-payments deficits.” 

But according to Bonta, no such deficits exist – “a trade deficit is not a balance-of-payments deficit.”

Motion asks U.S. Court of International Trade to halt collection

The filing asks the U.S. Court of International Trade to halt collection of the latest tariffs.

An economic analysis submitted to the court estimates the 24 states would face at least $748 million in additional annual costs.

The case, State of Oregon, et al. v. Trump, et al., is before a three-judge panel of the U.S. Court of International Trade. 

In-person oral arguments are scheduled for 10 a.m. EDT on April 10, 2026, in New York City.

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