A coalition of 25 Democratic-led US states has filed a lawsuit challenging President Donald Trump’s decision to impose tariffs on imports from 60 economies, arguing that the measures are unlawful and will increase costs for American consumers and businesses. The states have approached the US Court of International Trade seeking to have the tariffs struck down.

The lawsuit contends that the administration has improperly used provisions of the Trade Act of 1974 to justify the duties, which range from 10 per cent to 12.5 per cent. The states argue that the tariffs bear little connection to the stated objective of combating forced labour in global supply chains and instead amount to an illegal tax increase.

Coalition Challenges Legal Basis of Tariffs

The lawsuit was filed on Monday by New York Attorney General Letitia James, Governor Kathy Hochul and attorneys general from 24 other Democratic-led states.

Last month, the United States imposed a fresh round of tariffs on imports from 60 countries, replacing the 10 per cent global levies that expired on July 24. The administration said the revised tariffs, ranging between 10 per cent and 12.5 per cent, were intended to address failures to tackle forced labour in international trade.

India, along with 16 other countries, is subject to a 10 per cent tariff after the United States had earlier proposed a 12.5 per cent rate. The reduced rate followed India’s amendment of its foreign trade policy on June 14 to prohibit imports of goods produced using forced labour.

States Say Administration Misused Trade Law

According to the lawsuit, the Trump administration has relied on Section 301 of the Trade Act of 1974 as the legal basis for the tariffs. However, the states argue that the provision is being used as a pretext to reintroduce broad tariffs that the administration had previously attempted unsuccessfully.

The filing alleges that the administration failed to comply with the procedural requirements of Section 301 and imposed sweeping tariffs without establishing a clear link between the measures and the stated objective of addressing forced labour.

“After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs,” New York Attorney General Letitia James said.

She added, “No matter how the administration tries to justify it, the law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants.”

Lawsuit Questions Forced Labour Justification

The states argue that the tariffs were imposed arbitrarily and that built-in product exemptions undermine the administration’s claim that the measures are aimed at eliminating forced labour from global supply chains.

According to the filing, the administration’s investigation identified only three products linked to forced labour while using that finding to justify tariffs covering imports from dozens of countries.

The lawsuit also alleges that the Office of the United States Trade Representative failed to adequately consider testimony from affected countries and public submissions received during the consultation process. It says most of those submissions disputed the administration’s assertion that the tariffs would effectively address forced labour concerns.

California Attorney General Rob Bonta said, “Tariffs are taxes, and the American people cannot and should not shoulder the extra costs that come from the President’s failed and illegal economic policy, no matter how much the President wants them to.”

The coalition has asked the US Court of International Trade to declare the tariffs unlawful and block their implementation, arguing that they would increase costs for businesses and consumers across the country.

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