Freightwaves: 24 states, Nintendo sue Trump over tariffs as refund fight grows

A coalition of 24 U.S. states has filed a lawsuit against the Trump administration seeking refunds of tariffs they argue were imposed unlawfully.

The lawsuit added to a growing wave of legal challenges from companies such as Nintendo and Costco, as well as importers affected by the duties.

The outcome could reshape U.S. trade policy and determine whether importers receive billions in tariff refunds, a decision that would directly affect sourcing costs for retailers, manufacturers and logistics providers.

Filed on Thursday in the U.S. Court of International Trade, the lawsuit from a coalition of 24 states challenges tariffs imposed under Section 122 of the Trade Act of 1974 after the Supreme Court ruled that President Donald Trump exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).

The plaintiffs 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, according to court records.

The lawsuit 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 unlawfully imposed broad tariffs without congressional authorization, violating the Constitution’s provision that Congress — not the president — holds the power to levy duties and taxes on imports.

States say tariffs exceed legal authority

In the complaint, the states argue the administration improperly used Section 122 to impose sweeping tariffs after the Supreme Court struck down similar duties imposed under IEEPA.

According to the filing, the president imposed a 10% tariff on most imports beginning Feb. 24 and later signaled plans to increase the rate to 15%.

State attorneys general contend the law was intended only for narrow use during balance-of-payments crises tied to currency instability — circumstances they argue do not exist today.

“The Constitution assigns to Congress, not the President, the power to impose tariffs,” the states wrote in the complaint.

The states also argue the tariffs are already raising procurement costs for state governments and increasing prices on imported goods and components used by public agencies.

Nintendo joins companies seeking tariff refunds

Meanwhile, gaming giant Nintendo filed a lawsuit against the U.S. government on Friday 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. 

The company says the government collected billions of dollars in duties from importers under the emergency authority before the Supreme Court ruled the policy invalid.

Nintendo manufactures many of its gaming consoles and accessories overseas, primarily in Vietnam and China, making the company particularly exposed to the tariffs. 

More than 1,000 companies have filed similar lawsuits seeking refunds of tariffs they say were illegally collected.