- 25 US states challenge administration’s new broad import tariffs.
- Lawsuit argues tariffs unlawfully rely on forced labor investigations.
- States, allies criticize tariffs, raising concerns for consumers.
- Court ruling could halt tariffs, impacting global trade policy.
The Trump administration is facing a fresh legal challenge after a coalition of 25 US states moved to block its latest tariff regime, arguing that the sweeping import duties violate federal law. The lawsuit, filed in the US Court of International Trade in New York, challenges tariffs imposed on nearly 60 countries, including India, and seeks both an immediate halt to the measures and refunds for businesses that have already paid the duties.
The disputed tariffs, ranging between 10% and 12.5%, came into force on July 24 following the expiration of temporary global tariffs. According to figures from the Office of the US Trade Representative (USTR), the measures now apply to approximately 99.4% of all imports entering the United States.
States Challenge Legal Basis For Tariffs
The coalition argues that the White House is attempting to revive a broad tariff policy by relying on forced labour investigations as legal justification. The lawsuit claims this approach conflicts with a Supreme Court ruling delivered in February, which barred the President from using the International Emergency Economic Powers Act (IEEPA) as the legal foundation for imposing such tariffs.
According to the complaint, there is “no rational fit” between allegations of forced labour and the decision to impose blanket tariffs affecting almost every major US trading partner, as per reports. The states contend that investigations initiated under Section 301 of the Trade Act of 1974 were accelerated primarily to preserve the administration’s broader tariff strategy after its earlier legal setback.
ALSO READ: Iran War Hurting Trump? Democrats Overtake Republicans On Economy For First Time In A Decade
International Trading Partners Push Back
The tariffs extend to key economies including India, Japan, Brazil and Taiwan, drawing criticism from several governments.
Brazil and Japan have reportedly described the new duties as “unjustified”, while China’s foreign ministry also criticised the move. Responding to the latest measures, Chinese foreign ministry spokesperson Mao Ning said the tariffs were an “excuse for political manipulation,” underscoring continuing trade tensions between Washington and Beijing.
The legal challenge comes at a time when concerns are growing over the impact of higher import costs on businesses that rely heavily on international supply chains. Importers argue that the added duties could increase operating expenses, which may ultimately be passed on to consumers.
ALSO READ: US Military Seeks ‘Creative’ Ways To Punish Iran After Airstrikes Fail: ‘Unconventional’
State Leaders Criticise White House Trade Policy
Several Democratic state leaders have strongly criticised the tariff programme, arguing it places an unnecessary financial burden on households and local businesses.
Oregon Attorney General Dan Rayfield also criticised the administration’s approach, stating: “Despite losing every step of the way, Trump is trying yet again to inflict more chaos on working families and homegrown Oregon businesses. We’re all paying the price for these unlawful tariffs, not foreign governments.”
Despite the growing legal and political opposition, President Donald Trump has continued to defend the tariffs, maintaining that higher import duties are essential to revitalise American manufacturing, protect domestic industries and strengthen the United States’ position in global trade negotiations.
