Twelve U.S. states are suing Trump over tariffs

Twelve states, led by New York, have sued President Donald Trump over his ability to levy tariffs on his own. They say the president violated the law in 1977 when he used the International Emergency Economic Powers Act (IEEPA) to impose tariffs on future world trading partners, including China, Mexico and Canada.

They argue that Trump's actions blatantly stifle economic stability in America and call into question the balance of power laid out in the Constitution. The U.S. government has defended its tariffs, standing on the grounds of national security and trying to stem the trade deficit that the U.S. has with a few countries.

As per reports, the lawsuit comes on the heels of California's similar suit, as well as amongst heightened U.S.-China tensions, standing alongside a 145% tariff imposed on China, despite Trump's 90-day tariff pause to almost every other nation.

The states also contend that the IEEPA was never meant to provide presidents with unqualified authority over trade and argue that no previous administration has claimed to have tariffs as a tool using this law.

Their suit also contends that Trump's reading of the act was a usurpation of Congressional authority that sets a bad precedent, allowing the next president to operate just like this by ignoring Congress in national emergencies, as per Congress.

White House officials responded, accusing governors of using a national security issue to score political points. Spokesman Kush Desai defended the action, saying that national security issues demand urgent response, citing issues such as illegal migration and the trade deficit.

The lawsuit, filed in the U.S. Court of International Trade, joins the other lawsuits that have increased calls to examine Trump's tariffs against economic frameworks designed to limit market disruption, diplomatic relationships, and fears of a worldwide recession.

At press time, the crypto market has not been affected much and Bitcoin is still trading at $93,256.49, up by 0.55% in the last one hour, as per Kraken.