Gov. Jared Polis and Attorney General Phil Weiser announced that Colorado joined a multistate lawsuit to block President Trump’s illegal tariffs. The case challenges four of President Trump’s executive orders that claim the power to increase tariffs worldwide without congressional action.
“Tariffs are awful for Americans and our economy, and it’s important to use every legal tool possible to reduce trade barriers and increase prosperity. Today, Colorado is standing up against President Trump’s recessionary tariff tax increase, which has been disastrous and is jeopardizing both U.S. leadership and the world economy. Here in Colorado, tariffs are already hurting Colorado agriculture and small businesses. We will do everything we can legally to prevent tariffs that are bad for businesses and all Americans,” said Governor Polis.
“Coloradans are already starting to feel the effects of the Trump tariffs, with rising prices to consumers and the State of Colorado resulting from them,” Attorney General Weiser said. “Under the Constitution, only Congress has the power to tax and impose tariffs and there is no ‘emergency’ that justifies the Trump tariffs. We are challenging these tariffs in court because they are illegal and, as one study concluded, they will ‘increase inflation, result in nearly 800,000 lost jobs, and shrink the American economy by $180 billion a year’.”
The lawsuit challenges President Trump’s executive orders calling for higher tariffs on most products worldwide. These tariffs impose a 145 percent tariff on most products from China, a 25 percent tariff on most products from Canada and Mexico, and 10 percent tariffs on most products from the rest of the world. It also challenges President Trump’s plan to raise tariffs on imports from 46 other trading partners on July 9.
Studies of the tariffs President Trump issued in his first term show that 95 percent of the cost of tariffs are paid by Americans. The Federal Reserve and the International Monetary Fund project that this round of tariffs will cause inflation.
The lawsuit explains that under Article I of the Constitution, only Congress has the “Power To lay and collect Taxes, Duties, Imposts and Excises.” The executive orders cite the powers granted by the International Emergency Economic Powers Act (IEEPA), but that law applies only when an emergency presents “unusual and extraordinary threat” from abroad and does not give the President the power to impose tariffs. Congress enacted IEEPA in 1977. No President had imposed tariffs based on IEEPA until President Trump did so this year.
The case is led by Oregon Attorney General Dan Rayfield and Arizona Attorney General Kris Mayes. Also joining the lawsuit are the attorneys general of Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont.
Original source can be found here.