March 12th, 2026 – A coalition of 24 U.S. states has filed a lawsuit against the Trump administration seeking refunds for tariffs they say were imposed unlawfully. The case adds to a growing wave of legal challenges from companies including Nintendo and Costco, as well as numerous importers affected by the duties.
The outcome could have major implications for U.S. trade policy and determine whether importers receive billions of dollars in tariff refunds. Such a decision would directly influence sourcing costs for retailers, manufacturers and logistics providers.
The lawsuit was filed Thursday in the U.S. Court of International Trade. The coalition of states is challenging tariffs imposed under Section 122 of the Trade Act of 1974, arguing the administration turned to this provision after the Supreme Court ruled that President Donald Trump exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).
According to court records, the states participating in the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin.
The complaint names Trump, the U.S. Department of Homeland Security, U.S. Customs and Border Protection and several federal officials as defendants.
State officials argue the administration imposed broad tariffs without congressional authorization, violating the Constitution’s allocation of authority over import duties and taxes to Congress rather than the president.
In their filing, the states contend the administration improperly relied on Section 122 to impose sweeping tariffs after the Supreme Court struck down similar duties that had been imposed under IEEPA.
The complaint states that the president imposed a 10% tariff on most imports beginning February 24th and later signaled plans to increase the rate to 15%.
State attorneys general argue that Section 122 was intended only for limited use during balance-of-payments crises tied to currency instability, conditions they say do not exist today. Their complaint emphasizes that the Constitution grants Congress the authority to impose tariffs.
The states also say the tariffs are already increasing procurement costs for state governments and raising prices on imported goods and components used by public agencies.
At the same time, gaming company Nintendo has filed its own lawsuit against the U.S. government seeking refunds for tariffs it paid on imported products. According to Aftermath, Nintendo of America filed its complaint in the U.S. Court of International Trade, arguing the administration unlawfully used IEEPA to impose tariffs on goods imported from multiple countries.
Nintendo maintains that the government collected billions of dollars in duties from importers under the emergency authority before the Supreme Court ruled the policy invalid.
The company manufactures many of its gaming consoles and accessories overseas, primarily in Vietnam and China, leaving it particularly exposed to the tariffs.
Nintendo’s case is part of a broader legal push by the private sector. More than 1,000 companies have filed similar lawsuits seeking refunds for tariffs they argue were collected illegally.
