- 25 US states have filed a lawsuit against the Trump administration, claiming that the new tariffs are a pretext to reintroduce import taxes previously struck down by the Supreme Court.
- The administration recently imposed new double-digit tariffs on 59 countries and the European Union, citing their alleged failure to adequately address imports produced by forced labor.
- These new tariffs, implemented under Section 301 of the Trade Act of 1974, came into effect precisely as temporary worldwide tariffs, which followed a Supreme Court ruling against earlier tariffs imposed under the IEEPA, expired.
- New York Attorney General Letitia James stated the administration is "illegally trying to raise taxes on families and businesses" after losing at the Supreme Court.
- Legal experts note that while previous tariff attempts by the administration used novel statutes, Section 301 has a history of use and established legal guardrails, suggesting a significant legal battle ahead.
Twenty-five U.S. states have initiated a lawsuit against the Trump administration, alleging that the newly imposed tariffs are a guise to reinstate import taxes that the Supreme Court previously invalidated.1
The tariffs, which affect 59 countries and the European Union, were introduced under Section 301 of the Trade Act of 1974, coinciding with the expiration of temporary worldwide tariffs that followed a Supreme Court ruling against earlier tariffs imposed under the IEEPA.35
New York Attorney General Letitia James criticized the administration, stating it is "illegally trying to raise taxes on families and businesses" after losing at the Supreme Court.
Legal experts suggest that while the administration's previous tariff attempts utilized novel statutes, the use of Section 301 has established legal precedents, indicating a significant legal battle ahead.
The lawsuit reflects growing tensions between state governments and federal policies, particularly regarding trade practices and their implications for local economies.
As the legal proceedings unfold, the outcome could have far-reaching effects on U.S. trade policy and the administration's ability to impose tariffs without congressional approval.
“The new Section 301 tariffs took effect as temporary worldwide tariffs that followed a Supreme Court ruling against earlier IEEPA tariffs expired. New York Attorney General Letitia James said the administration is "illegally trying to raise taxes on families and businesses," while legal experts warn of a significant battle ahead.”