Twenty-five Democratic-led US states have filed a lawsuit seeking to block the Trump administration's new 10% and 12.5% tariffs on imports from 60 trading partners, arguing the measures exceed presidential authority.
The states contend the administration misused Section 301 of the Trade Act of 1974, saying the broad tariffs go beyond the law's intended purpose of addressing unfair trade practices.
The lawsuit follows a series of legal setbacks for Trump's trade agenda, including court rulings against previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Another Tariff Battle; 25 States Sue Trump Over New Trade Duties
The lawsuit argues President Donald Trump exceeded his authority by imposing sweeping import tariffs under Section 301 of the Trade Act, despite earlier legal setbacks over his trade measures
AI generated
Summary
Advertisement
Twenty-five Democratic-led US states sued the Donald Trump administration on Monday to block its latest round of tariffs on 60 trading partners. The lawsuit, filed in the US Court of International Trade in New York, challenges the new 10% and 12.5% import taxes that took effect on July 24.
The states, which include Oregon and New York and all have Democratic attorneys general or governors, argue the sweeping tariffs exceed presidential authority.
The new duties apply to major trading partners, including the European Union, over allegations they were not doing enough to stop the export of goods produced with forced labour.
Oregon Attorney General Dan Rayfield said in a statement, "Despite losing every step of the way, Trump is trying yet again to inflict more chaos on working families and homegrown Oregon businesses."
The White House defended the move as an appropriate and legal response to unfair trade practices in other nations.
Advertisement
White House spokesman Kush Desai said, "A foreign country's failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens U.S. commerce, including American workers, and must be addressed."
Debating Section 301 Authority
The administration imposed the latest global tariffs under Section 301 of the Trade Act of 1974, which is meant to combat unfair or discriminatory economic practices by other nations.
These duties affect over 99% of US imports. Small US businesses previously filed two lawsuits to block the taxes on the day they went into effect last month. States and small businesses have successfully challenged previous global tariffs imposed by Trump in his second term.
While past presidents have used Section 301, the plaintiffs argue the law has historically targeted specific nations and industries. They contend Trump's broad-brush application lacks historical precedent.
The states' complaint argues the administration used "forced labour" as a pretext to re-impose tariffs previously ruled illegal. The states stated that a sweeping import tax does not address actual forced labour conditions around the world.
Advertisement
A History of Defeats
Trump has made tariffs a central pillar of his foreign policy. This approach continues despite a major defeat at the US Supreme Court on February 20.
The court ruled against his widest-ranging tariffs, deciding that the International Emergency Economic Powers Act (IEEPA) does not authorise unilateral tariffs.
Trump responded by calling the Supreme Court justices "disloyal" and issuing temporary 10% tariffs under a different legal authority that no president had previously used to impose tariffs.
The US Court of International Trade later ruled those temporary 10% tariffs illegal. However, they remained in effect during the appeals process. These temporary duties expired just as the new Section 301 tariffs took effect on July 24.