A coalition of 25 US states — almost all led by Democrats — filed suit yesterday to block US President Donald Trump’s administration from enforcing sweeping new tariffs, arguing the president overstepped his authority by imposing the levies on dozens of countries.
The states brought the case in the US Court of International Trade in New York, asking judges to stop the tariffs from taking effect, declare them unlawful and require the US government to refund money collected under the measures.
At the center of the dispute are Mr Trump’s latest tariffs of 10% to 12.5% on 60 trading partners, which accounted for the bulk of US imports last month.
The administration imposed the duties following investigations by the US Trade Representative’s (USTR) office into allegations of “forced labour,” using Section 301 of the Trade Act of 1974.
“There is no rational fit between the purported problem of forced labour in international supply chains and the blanket global tariffs the USTR imposed,” the states said in a court filing.
Since beginning his second term, Mr Trump has roiled global trade by rolling out broad tariffs aimed at trading partners across the globe.
Mr Trump has said international partners have taken advantage of the US, and he has sought to wield tariffs as leverage in pursuit of new trade deals.
The White House pushed back yesterday, defending the tariffs and insisting the administration acted within the law.
“The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden US commerce,” White House spokesperson Kush Desai said in a statement.
“Section 301 tariffs have proven to be a legally durable tool since the President’s first term, and they remain so now,” Mr Desai added.
Earlier challenges
Mr Trump’s initial round of tariffs, imposed under the International Emergency Economic Powers Act, was struck down by the US Supreme Court in February. The administration then replaced them with a 10% global levy that expired in July.
The new Section 301 tariffs took over as that 10% duty lapsed, going into effect when the earlier levy expired on July 24.
Of the 25 states participating in the lawsuit, 23 are led by Democratic governors. Two states with Republican governors — Nevada and Vermont — also joined the challenge.
In their filing, the states contended that the Section 301 investigations were “a pretextual and unlawful effort to exert unfettered tariff power”.
The complaint also includes a timeline of statements from Mr Trump administration officials, which the states say shows the investigations were rushed and effectively decided in advance.
“The Tariff Action is arbitrary, capricious, and contrary to law,” the complaint says.
“The Plaintiff States oppose forced labour in all its forms and support protections for workers around the globe. But the administration cannot use forced labour as a pretext to continue its illegal tariff scheme.”
Separate, sector-specific tariffs Mr Trump imposed under other legal authorities — including duties on steel, automobiles and other goods — have not been affected by the recent legal challenges.
