Raleigh -- August 7, 2026: North Carolina Attorney General Jeff Jackson has filed a second lawsuit challenging the federal government's latest round of tariffs, asking a federal court to find that the administration exceeded its legal authority in imposing permanent tariffs under Section 301 of the Trade Act of 1974.
The lawsuit was announced August 4 by the North Carolina Department of Justice.
In July, the federal government imposed tariffs ranging from 10% to 12.5% on imports from 80 countries that together account for nearly all U.S. imports, according to the Attorney General's office.
Jackson's office says the tariffs will increase costs for North Carolina consumers and businesses, estimating that North Carolina families will pay approximately $1,100 more per year as a result. The office also warns that businesses could experience reduced profits and potential layoffs.
“These tariffs are hurting families, farmers, and business owners,” Jackson said. “They’re illegal, and they’re making things harder for North Carolinians who are working around the clock to keep the lights on, pay rent, and afford gas. We’re going to court to protect our state.”
Impact on North Carolina Consumers and Farmers
A June 2026 report from the John Locke Foundation cited by the Attorney General's office concluded that U.S. consumers are bearing the full costs of tariffs.
North Carolina farmers could also be affected by retaliatory tariffs imposed by foreign governments.
North Carolina exports significant quantities of agricultural products, including pork, soybeans, sweet potatoes and tobacco. When the United States imposes tariffs on imports, other countries can respond with tariffs on American products, making North Carolina agricultural goods more expensive in foreign markets.
Third Attempt to Impose Broad Tariffs
The August lawsuit comes after two previous efforts by the administration to impose broad tariffs using different federal authorities.
According to the Attorney General's office, North Carolinians paid nearly $3.5 billion last year in tariffs imposed under the International Emergency Economic Powers Act.
Those tariffs were subsequently struck down by the U.S. Supreme Court.
The administration then imposed temporary tariffs under Section 122 of the Trade Act of 1974. Section 122 allows tariffs for a limited 150-day period.
Jackson filed a lawsuit challenging those tariffs as well. The Section 122 tariffs have since expired, although that lawsuit remains in litigation.
The federal government is now using Section 301 of the Trade Act of 1974 as authority for the latest permanent tariffs.
What the New Lawsuit Is Asking the Court to Decide
Jackson and the other plaintiffs contend that the administration does not have the legal authority to use Section 301 in this manner.
The lawsuit asks the court to find that the new tariffs exceed the administration's authority under federal law and violate the Administrative Procedure Act.
The filing of the lawsuit does not itself determine whether the tariffs are legal. That question is now before the federal court.
23 Attorneys General Join the Challenge
Jackson is joined in the lawsuit by the attorneys general of Oregon, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Rhode Island, Virginia, Vermont, Washington and Wisconsin.
The governors of Kentucky and Pennsylvania have also joined the lawsuit.
The case represents the latest legal challenge over how much authority the executive branch has to impose broad tariffs under existing federal trade laws.
For North Carolina, the outcome could directly affect consumers, businesses and some of the state's largest agricultural industries as the courts determine whether the latest tariffs can remain in effect.