The Josh Lafazan Show on YouTube - Episode 109

12 States SUE Trump Over Tariffs – Legal Showdown Begins | The Josh Lafazan Show

The Josh Lafazan Show on YouTube - Episode 109

Today on The Josh Lafazan Show, we’re diving into one of the most consequential legal battles playing out in America right now: the state of Oregon suing the Trump administration over its sweeping and controversial new tariff policy—and they just might win.

Oregon Attorney General Dan Rayfield is leading a 12-state coalition in a lawsuit challenging President Trump’s move to impose massive new tariffs on imports from around the globe—without any congressional approval. The other states backing the lawsuit include Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont.

So why Oregon?

As Rayfield explains, the Pacific Northwest's economy is heavily dependent on international trade. “Right now, in Canada, they’re literally pulling Oregon products off shelves,” he said, illustrating just how quickly and severely the tariffs are already impacting Oregon’s businesses and workers.

The lawsuit was filed in the U.S. Court of International Trade and targets four executive orders from Trump that authorize sweeping tariff increases. The legal argument centers on Trump’s use of the International Emergency Economic Powers Act (IEEPA) of 1977—a law designed to give the president special powers during a genuine national emergency. But critics argue Trump is misusing it as a political shortcut to bypass Congress on trade policy.

The IEEPA was never meant to be used this way.

Historically, Congress has had the authority to regulate tariffs, and for good reason. The Constitution explicitly grants this power to the legislative branch. But Trump has declared a national economic emergency, citing long-standing trade deficits and illegal drug imports, particularly fentanyl from China, to justify his actions. Legal experts and state officials say this rationale is weak and constitutionally dubious.

California is also taking action. Governor Gavin Newsom and Attorney General Rob Bonta filed a parallel lawsuit—this one in federal court in California—challenging Trump’s authority to impose tariffs without congressional approval. Like Oregon, California is invoking the IEEPA and the “major questions” doctrine, arguing that such sweeping policy changes require clear and specific authorization from Congress.

Bonta called Trump’s moves “illegal,” adding, “The president’s chaotic and haphazard implementation of tariffs is not only deeply troubling—it’s illegal.” Newsom added that the tariffs are “wreaking chaos on California families, businesses, and our economy—driving up prices and threatening jobs.”

These legal fights are not just procedural—they're about the economic well-being of millions of Americans. Tariffs are essentially a tax on imported goods, and those costs are passed directly to consumers. Everyday Americans end up paying more for cars, electronics, groceries, and countless other items.

The economic data is alarming:
📉 The stock market has taken a massive hit.
📈 Gold, a traditional hedge against instability, has surged to record highs.
💵 The U.S. dollar has weakened significantly.
🛍️ Consumer spending and confidence have dropped.
🧾 Small businesses say they can’t keep up with the rising costs.

It’s not just the short-term chaos that’s worrying—it’s the long-term precedent. If the courts allow the executive branch to impose tariffs on this scale without congressional approval, it could change the structure of U.S. economic governance for decades to come.

And let’s not forget history: This isn’t the first time America has experimented with high tariffs. The Smoot-Hawley Tariff Act of the 1930s famously worsened the Great Depression. Today’s version is even more extreme—just as poorly timed—and just as damaging.

California, the