Expert weighs in as Virginia joins multi-state tariff lawsuit

RICHMOND, Va. (WRIC) -- In early March, Virginia joined more than 20 other Democratic-led states in suing the Trump administration over its newest tariffs.

Attorney General Jay Jones (D) said the tariffs could increase the price of imported goods and ultimately affect Virginia families.

Stephen Day, director of the Virginia Commonwealth University (VCU) Center for Economic Education, explained that tariffs are essentially taxes on items imported into a country.

"All tariffs are supposed to be levied by Congress," Day explained.

Despite this, President Donald Trump has imposed a variety of tariffs during his second term. Recently, his administration cited the 1974 trade law to place tariffs of up to 15% on imported items. Trump argues that the tariffs were necessary to address trade deficits and unfair practices.

"The biggest issues in these are legal ones -- 'Can the president of the United States impose taxes unilaterally, and of any amount, and of any timing?' And the Supreme Court has said no," Day said.

The Supreme Court struck down previous tariffs imposed without congressional approval. That decision led to refunds for some businesses -- an outcome Day said partly motivated the current lawsuit.

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"It's basically states trying to get a similar ruling on behalf of businesses inside their states," he said.

While Day said he cannot predict which items might see price increases, he cautioned consumers against expecting direct financial relief from the courts.

"You're not going to get this big check in the mail, but you shouldn’t look at court cases like this to decide your own personal finances or your investing strategy," Day said. "You should stay on course with normal, good finances. Live within your means."

Although consumers are unlikely to feel immediate effects, Day said tariffs can make it harder for businesses to keep products in stock.