Court Rules
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CoalitionLow RiskMultistate

24-State Coalition Led by Virginia AG Wins Lawsuit Invalidating Trump Administration's Illegal Tariffs

Trump AdministrationMay 8, 2026Virginia Attorney General

Summary

A coalition of 24 states led by Virginia Attorney General Jay Jones won a lawsuit against the Trump Administration, invalidating illegal tariffs imposed under Section 122 of the Trade Act of 1974. The U.S. Court of International Trade ruled the tariffs were unauthorized by law, as a trade deficit does not constitute the required 'large and serious balance-of-payment deficits' under the statute. The ruling prevents the administration from enforcing the 10% worldwide tariffs on most products.

Remedy

The U.S. Court of International Trade invalidated the 10% worldwide tariffs imposed by the Trump Administration under Section 122 of the Trade Act of 1974, ruling they were unauthorized by law. The administration is prohibited from enforcing these tariffs.

Injunction

Contract Impact

This enforcement action concerns the invalidation of federal tariffs on imported goods, not privacy or data-related vendor agreements. In-house legal teams handling supply chain, import/export, or vendor agreements involving international goods should review clauses related to tariff shifts, trade compliance, and force majeure in the event of changing trade policies. Privacy-related contract clauses (data processing, breach notification, consent) are not impacted by this action.

Contract Search Terms

tariff clauseSection 122 Trade Actbalance of payment deficitimport dutytrade deficittariff complianceTrade Act of 1974

Laws Cited

International Emergency Economic Powers ActSection 122 of the Trade Act of 1974
Section 122 of the Trade Act of 1974

Violation Types

Entity Details

Entity

Trump Administration

Industry

Other

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Trump Administration"
Laws Cited
"International Emergency Economic Powers Act"
Laws Cited
"Section 122 of the Trade Act of 1974"
Violation Types
"the Trump Administration’s tariffs were unlawful from the start"
Event Date
"Published on: May 8, 2026"
Is Multistate
"coalition of 24 states"

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