Attorney General Jeff Jackson Sues to Stop Illegal Tariffs

Tariffs Could Cost North Carolina Households $3.6 Billion This Year

FOR IMMEDIATE RELEASE
Thursday, March 5, 2026
Contact: [email protected]
919-538-2809

RALEIGH - Today, Attorney General Jeff Jackson is suing to block the federal government's latest unlawful tariffs on American consumers and businesses without congressional approval. The tariffs could cost each North Carolina household an estimated $800 to $1,300 this year.

"North Carolinians have already paid billions in unlawful tariffs - our farmers, our manufacturers, and our communities can't bear more," said Attorney General Jeff Jackson. "I'm taking the federal government to court because they broke the law again, they harmed North Carolinians, and I can prove it."

Last year, the federal administration imposed tariffs on products from numerous countries that forced U.S. businesses and manufacturers to raise prices on vehicles, heavy machinery, furniture, pharmaceuticals, and other goods. As a result, North Carolina paid nearly $3.5 billion in tariffs. The administration claimed that the International Emergency Economic Powers Act (IEEPA) allowed the president to impose tariffs of any amount, on any product, from any country, for any length of time. Two weeks ago, the Supreme Court struck down those tariffs in a 6-3 ruling, concluding that the tariffs were unlawful and exceeded the powers that Congress gave the president to regulate commerce.

Later that same day, the federal administration imposed a new set of tariffs under a separate law - Section 122 of the Trade Act of 1974. Attorney General Jackson and a coalition of attorneys general argue these tariffs are also unlawful because Section 122 does not authorize the president to issue tariffs under the nation's current financial circumstances.

These new 15 percent tariffs would apply to an estimated $1.2 trillion worth of annual imports nationally. North Carolina's agriculture industry could take an especially hard hit. The John Locke Foundation estimated that North Carolina's farming industry and rural economy would lose about $1.9 billion and 8,000 jobs because of the IEEPA tariffs. The new tariffs threaten similar pain to our rural economy if other countries maintain retaliatory tariffs. This dynamic squeezes farmers because it decreases their exports of agricultural products at the same time they're having to pay more to produce those products.

The attorneys general contend that the new tariffs violate the U.S. Constitution, which gives Congress, not the president, the power to set and collect taxes, and violates the Administrative Procedure Act.

The case is entitled State of Oregon, et al., v. Trump, et al. is being filed in the U.S. Court of International Trade. A copy of the complaint is available here.

Attorney General Jackson is joined in filing this lawsuit by the Attorneys General of Oregon, Arizona, California, New York, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the Governors of Kentucky and Pennsylvania.

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