State Attorneys General Are Fighting for Refunds of Trump’s Illegal Tariffs
Americans are dealing with a constant stream of chaos and confusion when it comes to the cost of everyday goods and services. Whether it’s groceries or electricity bills, families consistently ask why things are costing so much.
While state attorneys general have been cracking down on the fraud and anticompetitive tactics that drive up costs, they’ve also blocked many of the tariffs that have either pushed up prices on individual goods – or given companies an excuse to raise prices across the board.
State attorneys general are now seeking refunds for the small businesses and consumers who want their money back.
Progressive state attorneys general prevailed at the Supreme Court to overturn Trump’s tariffs
Last year, shortly after the announcement of the “Liberation Day” tariffs in April 2025, state attorneys general filed a lawsuit to block the tariffs from coming into effect. President Trump imposed the illegal tariffs based on a law known as the International Emergency Economic Powers Act, enacted in 1977. The new tariffs were assessed on a wide range of goods imported from countries around the world.
In May 2025, the Court of International Trade ruled in favor of the twelve state attorneys general. Then, in August 2025, an appeals court also ruled that the International Emergency Economic Powers Act did not authorize Trump’s tariffs. In February of this year, the Supreme Court came to a similar conclusion.
Now, progressive states attorneys general are challenging a new round of tariffs
Shortly after the Supreme Court ruling, President Trump tried another tactic to raise costs and announced that he would impose tariffs using a different law: Section 122 of the Trade Act of 1974.
The law establishes a system of uniform tariffs, where the President can impose duties for 150 days under certain circumstances. The White House announced that these new tariffs would take effect on February 24, just days after the Supreme Court struck down the tariffs imposed under the 1977 law.
State attorneys general again quickly filed a lawsuit to challenge these new tariffs.
This coalition of state attorneys general is pushing for real refunds
Last week, U.S. Customs and Border Protection announced the first phase of how it will accept requests for refunds. The new process is complex. Importantly, the refunds will be paid to the companies that officially imported the goods to the United States.
However, there has now been a wide set of analyses that show that tariffs have led to price increases for consumers and businesses that purchased these imported goods. The people and small businesses want their money back. State attorneys general agree.
The coalition of states has requested legislation that:
– Makes the process for tariff refunds streamlined, and where possible, automatic
– Pays importers back with interest
– Requires companies getting rebates to refund consumers and small businesses who purchased from them
State attorneys general will continue to fight back against illegal tariffs and fight for rapid refunds. While many in our nation’s capital are taking steps to actively raise the prices of gas, groceries, and everyday items, state attorneys general are actively fighting to lower costs for families and businesses that play by the rules.
Rohit Chopra is the former Director of the Consumer Financial Protection Bureau and a former Commissioner on the Federal Trade Commission. He serves as a senior adviser to the Progressive State Leaders Committee.