Oregon and 23 other US states filed a lawsuit this week to halt President Donald Trump's latest tariff proposal, escalating a legal battle over executive trade authority. The coalition argues the 15% global tariffs announced under Section 122 of the Trade Act of 1974 exceed presidential powers and could worsen inflation pressures.
"This administration continues to bypass Congress with economically harmful policies," said Oregon Attorney General Dan Rayfield in a March 5 statement. The lawsuit follows a February 20 US Supreme Court ruling that struck down previous tariffs enacted under emergency powers.
New York Federal Reserve research cited in court documents shows US consumers bore nearly 90% of tariff costs in 2025. Economists warn the 2026 plan could add $1,200 annually to household expenses in participating states through increased prices for essentials.
The legal challenge comes as global markets monitor potential impacts on Asia-US trade flows. While the tariffs target all trading partners equally, analysts suggest Southeast Asian manufacturing hubs could see short-term benefits if the measures take effect.
