A coalition of 25 US states, overwhelmingly governed by Democrats, filed a lawsuit yesterday against US President Donald Trump’s administration, accusing it of exceeding its authority by imposing broad tariffs on dozens of countries.
The states brought the case before the US Court of International Trade in New York. They are asking the judges to block the tariffs, rule that they are unlawful and require the federal government to repay the money collected under them.
The lawsuit targets Mr Trump’s latest tariffs, ranging from 10% to 12.5% and covering 60 trading partners that accounted for most US imports last month.
The levies followed investigations by the office of the US Trade Representative (USTR) into allegations of “forced labour”. Those probes were carried out under Section 301 of the Trade Act of 1974.
Since returning to office for a second term, Mr Trump has unsettled global commerce with a sweeping tariff campaign aimed at trading partners around the world.
He has said the US has been exploited by other countries and has portrayed tariffs as a negotiating instrument for securing new trade agreements.
The White House defended the administration’s policy yesterday, rejecting the states’ argument that the tariffs were unlawful.
“The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden US commerce,” said White House spokesperson Kush Desai 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 tariffs, imposed under the International Emergency Economic Powers Act, were struck down by the US Supreme Court in February. He then replaced them with a 10% global levy, which expired in July.
The Section 301 tariffs now being challenged took the place of that levy and came into force when the 10% measure expired on July 24.
Twenty-three of the 25 states involved in the case have Democratic governors. The other two, Nevada and Vermont, are led by Republicans.
The states said in their filing that the Section 301 investigations amounted to “a pretextual and unlawful effort to exert unfettered tariff power”.
The complaint traces statements by officials in the Trump administration and argues that the investigations were launched hastily, with their outcome 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 tariffs imposed by Mr Trump on specific sectors, including steel, automobiles and other goods, rely on different legal authorities and have not been affected by the latest court challenges.
