U.S. States Sue Trump Admin Over New Tariffs
New York attorney general Letitia James accused the Trump administration of again unlawfully imposing new tariffs after a Supreme Court ruling found their earlier measures unconstitutional. On Monday, 25 states filed a legal action seeking to stop the 10% to 12.5% tariffs placed on goods from 60 trading partners.
The lawsuit claims the Trump administration is using the issue of forced labor as a reason to exceed its trade authority. The filing reveals the new tariffs impact 99.4% of U.S. imports, applied to 59 countries and the European Union, showing a broad economic strategy.
Administration Justifies Tariffs as Legal and Essential
According to the administration, the tariffs respond to foreign governments not adequately addressing forced labor. White House spokesman Kush Desai stated the tariffs are legal and essential, as countries failing to enforce labor prohibitions burden American commerce, including American workers.
The new tariffs, effective in July, are justified under Section 301 of the Trade Act of 1974. This law allows the U.S. to penalize countries with unfair trade practices. However, the coalition of states challenges the legitimacy of the administration's use of this provision, claiming it is an unconstitutional misuse of power.
The 25-state coalition includes New York, California, and 23 other states. The countries affected by the tariffs are key U.S. trading partners like Canada, Japan, Norway, Taiwan, and China. New York Governor Kathy Hochul criticized the administration for disguising an arbitrary tax hike on essential goods as a genuine labor policy.
Hochul and James expressed concerns that the tariffs are increasing the cost for families to buy groceries, household essentials, building materials, and a variety of everyday items. Hochul emphasized in a statement the Supreme Court has ruled the administration cannot bypass the law to implement broad tariff policies.
The new tariffs replaced the “Liberation Day” tariffs after temporary measures expired. This comes after another lawsuit filed by the Liberty Justice Center on behalf of two U.S. small businesses who argue the Trump administration overstepped its executive authority with the new tariffs.
States Argue Tariffs Violate Section 301 Requirements
Letitia James criticized the administration, stating that after losing at the Supreme Court, they are again trying to illegally raise taxes on families and businesses. She added that no matter the administration's justifications, the law and Constitution clearly state the president does not have the authority to impose sweeping tariffs on any chosen countries.
Hochul and James argue the administration’s tariffs based on an assumed investigation into countries' efforts to combat forced labor do not meet Section 301's requirements.
The states seek the U.S. Court of International Trade to stop the tariffs, declare them unlawful, and order refunds for duties already paid. They claim the Trump administration is using forced labor as an excuse to continue its policy of indiscriminately imposing harmful tariffs on a wide range of countries, increasing prices for constituents.
White House Defends Use of Tariff Authority
White House representative Kush Desai responded, stating the U.S. is using its lawful authority to eliminate unreasonable acts, policies, and practices burdening U.S. commerce. Desai explained that foreign countries failing to enforce and effectively implement prohibitions on importing goods made with forced labor create unreasonable burdens and must be addressed.
The legal battle continues as the states argue the tariffs are not only unconstitutional but also a disguised method of increasing the cost of living for American families. Hochul added that President Trump’s tariffs amount to a tax on hardworking families, inflating the cost of groceries, household essentials, building materials, and countless everyday goods.
James emphasized the Supreme Court has already stated the administration cannot ignore the law to impose sweeping tariffs. The states aim to uphold constitutional boundaries while protecting their constituents from what they view as unjust financial burdens through trade policy.
The lawsuit said the Trump administration "cannot use forced labor as a pretext to continue its illegal tariff scheme." "The tariffs the USTR imposed are so broad that they defy the USTR's own stated aims and make a mockery of the statute used to justify them," it said. "President Trump's illegal tariffs are nothing more than a tax on hardworking families," said New York Governor Kathy Hochul. "Despite losing every step of the way, Trump is trying yet again to inflict more chaos on working families and homegrown Oregon businesses," Oregon Attorney General Dan Rayfield said in a statement. "We're all paying the price for these unlawful tariffs, not foreign governments," he added. Of the 25 states in the suit, 23 have Democratic governors while two -- Nevada and Vermont -- are led by Republicans. In their court filing, the states argued that the Section 301 probes were "a pretextual and unlawful effort to exert unfettered tariff power." The document lays out a timeline of Trump administration officials' statements, arguing that the investigations were rushed and prejudged when they were initiated. "The Tariff Action is arbitrary, capricious, and contrary to law," the complaint says. "The Plaintiff States oppose forced labor in all its forms and support protections for workers around the globe. But the Administration cannot use forced labor as a pretext to continue its illegal tariff scheme."
Several of the affected trading partners have expressed disappointment over the new tariffs, with Brazil and Japan's governments separately calling the measures "unjustified." China's foreign ministry spokesperson Mao Ning described the tariffs as an "excuse for political manipulation." Washington and Beijing have been locked in a tit-for-tat tariffs war which is currently on hold.
It marks the latest move in a slew of trade policies unveiled by Trump since he returned to office in January 2025. Many of the wide-ranging duties Trump imposed on global trading partners in his so-called "Liberation Day" tariffs in April last year were struck down by the U.S. Supreme Court. "The Supreme Court has made it clear that this administration cannot ignore the law to impose sweeping tariffs," Hochul said. The court's decision prompted tens of billions of dollars in refunds to companies that had paid the levies.
Some analysts have also questioned how countries would be able to show that they had properly addressed the forced labour claims.
The president has long argued that tariffs protect American workers and boost the U.S. economy.
More tariffs could also be on the horizon as the U.S. is currently investigating 16 countries over claims of manufacturing overcapacity.
Related topics - Published 24 July