A coalition of 12 Democratic state Attorneys General filed a new lawsuit against President Donald Trump and other administration officials Wednesday, alleging that his tariff policies are unconstitutional.

The suit, which names as defendants President Trump, DHS Secretary Kristi Noem, acting Customs and Border Protection Commissioner Peter Flores and the United States government, charges that President Trump's tariff orders violate the separation of powers laid out in the Constitution.

The suit alleges that the president doesn't have the justification of an “unusual and extraordinary threat" to bring tariffs himself.

"Because the President lacks statutory authority to impose the tariffs in the IEEPA Tariff Orders, the IEEPA Tariff Orders are an exercise of Congressional authority in violation of separation of powers," plaintiffs write.

“The president does not have the power to raise taxes on a whim, but that’s exactly what President Trump has been doing with these tariffs,” said New York Attorney General Letitia James in a statement on the new suit. “Donald Trump promised that he would lower prices and ease the cost of living, but these illegal tariffs will have the exact opposite effect on American families. His tariffs are unlawful and if not stopped, they will lead to more inflation, unemployment, and economic damage.”

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The suit marks an escalation in reaction to Trump's tariff policies. Last week California, which itself accounted for more than 7% of U.S. GDP in 2024, sued the Trump administration over the same tariff justification.

California Gov. Gavin Newsom, a Democrat, said the tariffs have essentially resulted in inflated costs and could bring billions of dollars in damage to California, which has the largest economy among U.S. states and is a massive exporter. The additional costs from tariffs could also hamstring the state's ability to plan for the future and pay for services, the suit argues.

The tariffs have rattled financial markets and consumer sentiment.

According to the Wall Street Journal, the Dow is on track for its worst performance in April since 1932. Furthermore, recent data shows the markets are poised for the weakest first 100 days of a new presidency in nearly a century.

The economic strain is not confined to Wall Street; it extends to Main Street as well. A Gallup poll reveals that 53% of Americans believe their personal financial situations are worsening, marking a record high and the first time since 2001 that a majority have expressed such concerns.