Attorney General Bonta Continues to Challenge Tariffs on All Fronts: President Trump Lacks the Authority to Impose Tariffs

Files brief in support of states rocked by tariffs across the country 

OAKLAND — California Attorney General Rob Bonta and Governor Gavin Newsom today filed an amicus brief in Oregon v. Trump, a case challenging President Trump’s illegal imposition of so called “emergency” tariffs under the International Emergency Economic Powers Act (IEEPA). Last month, Attorney General Bonta and Governor Newsom filed a lawsuit challenging President Trump’s unlawful use of power to levy tariffs via over a dozen executive orders under the IEEPA. In the brief filed today in the Court of International Trade, Attorney General Bonta argued that the Trump Administration’s interpretation of its authority under IEEPA is incorrect — the Act’s language does not provide the authority impose tariffs. 

“President Trump’s illegal tariffs impact businesses, consumers, and states across the nation and it is our responsibility as state leaders to advocate and defend our people against harmful — and illegal — actions,” said Attorney General Bonta. “It’s simple, the statute that the President is using to impose his chaotic tariffs clearly does not include the authority to do so, any reading of it as such is wild, nonsensical, and irresponsible.”  

BACKGROUND

In the past few months, President Trump has issued over a dozen executive orders imposing, pausing, reimposing, and escalating tariffs on every U.S. trading partner, and claimed authority to do so under IEEPA. New tariffs are chaotically contemplated, announced, or delayed nearly every day. The uncertainty surrounding the tariffs is itself causing immediate harm to California by incapacitating its ability to budget and plan for the future and chilling the economy — as businesses and people pause decision-making and lose out on opportunities. 

While difficult to calculate due to their frenzied nature, most estimates put the new average tariff rate at or above 25%. The current IEEPA tariff regime imposes a universal tariff of 10% on all U.S. trading partners, with tariff increases as high 50% on more than 50 specific trading partners set to go into effect on July 9, 2025. 

Separately, Canada and Mexico are subject to IEEPA tariffs of up to 25%, which are currently in effect after being paused and then re-started. China is subject to an ever-changing combination of IEEPA tariffs that reached a staggering rate of 145%, and as of the publication of this press release, plummeted down to 30% under the 90-day pause. The claimed rationales for each of these tariffs is wide-ranging and difficult to follow from trade deficits and foreign trade practices to immigration, crime, and illicit drugs. In response to President Trump’s tariffs, major U.S. trading partners including China, Canada, and the European Union have imposed or announced retaliatory tariffs — China’s retaliatory tariffs alone reached 125%.

The impact of President Trump’s unprecedented IEEPA tariffs is devastating and unprecedented. The near-daily threats to impose new tariffs have already inflicted and continue to inflict serious financial harms on California and states across the nation — with the largest burden expected to fall on the poorest Americans, who cannot absorb the loss of wages or the greater cost of goods. 

President Trump’s tariff regime will:

• Reduce Americans’ incomes and productivity: Tariffs are expected to reduce the labor supply by 546,000 full-time jobs. 
• Cause higher prices and less availability of goods, leading to goods shortages and supply chain disruptions: The Port of Los Angeles saw a third of import volume disappear as of the first week of May, which will hit the availability of goods in stores in only a few weeks. 
• Wreak havoc on our financial systems: The U.S. stock market suffered the largest two-day loss in its history in the two days following the announcement of President Trump’s most sweeping tariffs. 
• Generate enormous economic damage to both the U.S. economy and the California economy: Tariffs, on net, reduce production, income, and efficiency. 
• Raise the probability of a recession: Recessions are damaging to public finance and state budgets — budget pressures can also mean cessation of spending in areas of pressing need, such as public safety, education, and disaster preparedness.

A copy of the brief is available here.