- Twenty-five states sued the Trump administration Monday over its latest tariffs, calling them a pretext for replacing import taxes the Supreme Court struck down in February.
- The new tariffs took effect just as the clock ran out on temporary tariffs President Donald Trump had turned to after the Supreme Court defeat.
- Trump invoked Section 301 to impose double-digit forced-labor tariffs on 59 countries and the EU, announced July 24; India's rate was later cut to 10%.
- New York Attorney General Letitia James stated that after losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs.
- The lawsuit was brought by 25 states, including Oregon and New York, all led by Democratic governors or attorneys general.
- Earlier this year, the US Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) did not give the president authority to impose sweeping global tariffs, striking down one of Trump's signature trade initiatives.
- In response, Trump imposed temporary worldwide tariffs under Section 122 of the Trade Act of 1974, which expired at midnight July 24.
- The administration has now turned to Section 301 of the Trade Act of 1974, a law traditionally used to respond to unfair or discriminatory trade practices by foreign governments.
Twenty-five U.S. states have initiated a legal battle against the Trump administration's new tariffs, claiming they are an unlawful attempt to impose taxes after a Supreme Court ruling.210
The lawsuit, led by New York Attorney General Letitia James, argues that the administration is using forced labor as a pretext to reimpose tariffs that had previously been struck down by the courts.5
“After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses,” James stated.
The tariffs, which affect 60 countries including India, were announced on July 24 and range from 10% to 12.5%.
The states contend that the administration is misusing Section 301 of the Trade Act of 1974, which is intended to target specific unfair trade practices, not to impose broad tariffs on nearly all imports.34
“Despite losing every step of the way, Trump is trying yet again to inflict more chaos on working families,” said Oregon Attorney General Dan Rayfield.
The tariffs are aimed at countries accused of failing to prevent the export of goods made with forced labor, a claim the administration defends as necessary for U.S. commerce.
The lawsuit follows previous legal challenges against the administration's tariffs, including two filed in July by small businesses.
The states involved in the lawsuit include California, Colorado, and Illinois, among others, all led by Democratic governors or attorneys general.
“The United States is using its lawful authority to obtain the elimination of unreasonable acts,” said White House spokesman Kush Desai, defending the tariffs as a necessary measure.
The legal fight underscores ongoing tensions over trade policy and the administration's approach to international relations.
“The new Section 301 tariffs range from 10% to 12.5% and apply to countries that supply 99% of American imports, according to the administration. India's rate was cut to 10% after strengthening enforcement, while the White House defends the duties as a legally durable tool.”
