Court of International Trade rules in favor of state coalition, invalidating tariffs that are increasing prices and inflicting chaos on the American economy

OAKLAND — California Attorney General Rob Bonta today announced that a federal court issued a final order invalidating President Trump’s latest efforts to impose illegal tariffs on products purchased by American consumers and businesses. The court granted summary judgment today, in a case brought by California and a multistate coalition, striking down President Trump’s proclamation imposing global tariffs using Section 122 of the Trade Act of 1974.

“Today, a court declared the Trump Administration’s second tariff regime illegal, delivering another major victory for American consumers and small businesses nationwide,” said Attorney General Bonta. “The President’s illegal tariffs increased prices amid a crisis of affordability and inflicted chaos on the American economy. California has challenged these unlawful taxes time and time again because we stand with businesses, consumers, and families across the state and nation who are already struggling with rising costs. Today’s decision is a huge win not only for our state coalition, but for American businesses and families that have been harmed by the President’s reckless and illegal tariffs.” 

For more than a year, President Trump has unlawfully attempted to impose tariffs on essential goods purchased by American consumers and businesses. Attorney General Bonta and Governor Newsom previously challenged the President’s imposition of tariffs under the International Emergency Economic Powers Act of 1977. In February 2026, the U.S. Supreme Court struck down President Trump’s imposition of tariffs under IEEPA, declaring them illegal. The President then attempted to use a different law that has never been used before — Section 122 of the Trade Act of 1974 — and imposed 10 percent tariffs on most products worldwide, supposedly in response to trade deficits. Today, the federal court ruled that those tariffs are illegal, too. Section 122 allows tariffs only when there are “fundamental international payments problems” that require special measures to deal with “large and serious balance-of-payments deficits.” But there are no such deficits: A trade deficit is not a balance-of-payments deficit. As the court ruled, the President’s tariff proclamation “is invalid, and the tariffs imposed on Plaintiffs are unauthorized by law.”

The multistate coalition case was led by Attorney General Bonta, Oregon Attorney General Dan Rayfield, Arizona Attorney General Kris Mayes, and New York Attorney General Letitia James. Also joining the lawsuit are the attorneys general of Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania.