BALTIMORE — Following the Supreme Court's ruling against President Trump's tariffs under the International Emergency Economic Powers Act (IEEPA), a number of American companies are attempting to claw back billions in paid import fees.
Trump and company claim the Supreme Court's ruling cleared the way for tariffs to be imposed by other means, just not via the IEEPA.
Accordingly, the Administration implemented new rounds of tariffs under Section 122 of another law known as the Trade Act of 1974.
MORE: After Supreme Court setback, Trump administration officials detail tariff plan
The White House argues tariffs are essential in protecting national security and foreign policy, especially as it relates to international trade.
For one, the Administration believes tariffs could reduce the national deficit by $4 trillion.
Additionally, Trump admits the tariffs brought other countries to the negotiating table resulting in various fair trade agreements worth $15 trillion.
On Thursday 24 Democratic State Attorneys General filed a brand new lawsuit challenging Trump's latest set of tariffs.
Maryland is among those states.
"Section 122 does not apply – that law authorizes tariffs in limited circumstances, including when there are large and serious balance-of-payments deficits," said Attorney General Anthony Brown. "Notably, a trade deficit is not a balance-of-payment deficit, meaning that once again the President is acting unlawfully."
In his dissent Justice Brett Kavanaugh referred several times to Section 122, opining that it does indeed give the President power to levy tariffs "as means of regulating imports."
The majority, however, held that tariffs equate to a tax writing that Congress must first sign off on such a measure.
It should be noted though, even the majority concedes on page 14 of their opinion, while IEEPA does not authorize Trump to lodge tariffs, it does afford him the ability to "nullify, void, prevent or prohibit . . . importation or exportation.”
Trump, in response, picked up on that stating on Truth Social he was more empowered by the ruling.
Recently Brown and Governor Wes Moore sent Trump a letter demanding refunds for families impacted by the IEEPA tariffs.
They estimate 2.4 million Maryland households were impacted, costing approximately $4 billion.
The lawsuit was filed in the U.S. Court of International Trade, which is already hearing cases regarding IEEPA refunds.
