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Led by Oregon Attorney General Dan Rayfield, a coalition of 24 states filed a motion yesterday to block the implementation of President Trump’s latest efforts to impose illegal tariffs on products purchased by American consumers and businesses.
Oregon Leads Multi-State Lawsuit Suing Trump Over Illegal Tariffs
In the case of the state of Oregon et al. v. Donald J Trump et al. filed yesterday, the motion asks for summary judgment or a preliminary injunction as the president doesn’t have the authority to impose sweeping tariffs- as confirmed by the court. Rayfield says the focus should also be on getting people and businesses their money back.
AG Rayfield said, “Oregon families are paying more for groceries and other basic items because of these tariffs, and they shouldn’t be.”
The lawsuit comes after Oregon joined 18 other Governors urging Congress to reclaim tariff powers.
President Trump has unlawfully attempted to impose tariffs on essential goods for over a year, illegally invoking the International Emergency Economic Powers Act.
| Issue | Section 122 | Oregon led challenge |
|---|---|---|
| Trigger | Large and serious balance of payments deficits | States say a trade deficit is not that condition |
| Tariff cap | Temporary surcharge up to 15% | Trump used 10% on most products worldwide |
| Time limit | Up to 150 days unless Congress extends | States want the court to stop collection now |
| Relief sought | Temporary import measures for rare payment crises | Summary judgment or a preliminary injunction |
He is now trying to use a different law that has never been used before- Section 122 of the Trade Act of 1974- to impose 10% tariffs on most products worldwide.
The move is apparently in response to trade deficits, but the new tariffs are illegal, too, as Section 122 only allows tariffs when there are “large and serious balance-of-payment deficits.” No such thing currently exists.
A trade deficit is not a balance-of-payment deficit. Economic analysis in the lawsuit shows that state governments in the 24 plaintiff states stand to pay at least $748 million per year in additional costs due to the tariffs.
Tidings Data Snapshot
Tariff Case By The NumbersSource: Oregon Department of Justice tariff motion release / Federal Reserve Bank of New York tariff incidence analysisDailyTidings.com
A recent analysis by researchers at the Federal Reserve Bank of New York similarly concluded that nearly 90 percent of the costs of tariffs last year were paid by American consumers and businesses.
The Plaintiffs ask the three-judge panel of the US Court of International Trade to order federal agencies to stop collecting the latest round of illegal tariffs. In-person oral argument is scheduled for 10:00 a.m. EDT on Friday, April 10, 2026, in the court’s ceremonial courtroom in New York City.
Oregon’s Balance Of Trade Flips To Deficit After Tariff Wave
Oregon’s trade picture had already turned sharply worse before this latest court filing. Federal data shows the state’s goods balance flipped from a $5.7 billion surplus in 2024 to a roughly $2.7 billion deficit in 2025- the first annual goods deficit since at least 2008.
Tidings Data Snapshot
Oregon Trade Shifts In 2025Source: Business Oregon economist trade report using U.S. Census Bureau Foreign Trade Division data via wisertrader.orgDailyTidings.com
Several reports confirmed the deficit that arose after the state was hit by sweeping tariffs imposed by the Trump regime. Goods exports fell by roughly 17% in 2025, while imports rose by about 9%, resulting in a goods trade deficit of about $2.7 billion, following 2024’s trade surplus of about $5.7 billion.
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