A coalition of 25 Democratic-led states filed suit in the US Court of International Trade, challenging new double-digit tariffs imposed on 60 trading partners last month. The states alleged that the tariffs were implemented without legal authority and represent an unlawful tax on families and businesses. The targeted levies were justified by the administration as a response to inadequate efforts by other nations to prevent importation of goods produced through forced labor.
The new tariffs took effect as temporary 10 percent worldwide tariffs expired on July 24, which the administration had adopted following a February Supreme Court decision that invalidated the administration’s previous flagship tariff program known as “liberation day.” That earlier program had invoked the International Emergency Economic Powers Act of 1977, but the Court determined that statute did not authorize tariff authority. The latest tariff round instead relies on Section 301 of the Trade Act of 1974, which permits tariffs in response to unfair or discriminatory trade practices.
The current tariffs apply to more than 99 percent of US imports. White House spokesman Kush Desai characterized the levies as a necessary and legal measure, stating that the failure of foreign nations to prohibit and enforce restrictions on forced labor imports creates an unreasonable burden on American commerce and workers. New York Attorney General Letitia James, representing the suing states, contended that the administration was attempting to circumvent the Supreme Court ruling by relabeling the tariffs under a forced labor rationale.
The lawsuit represents part of a broader legal challenge to the administration’s tariff policies. Two previous suits brought by small business groups made similar arguments, asserting that forced labor concerns served as a pretext to reinstate tariffs that courts had already deemed illegal. The business plaintiffs further argued that broad import taxes would be ineffective at addressing genuine forced labor concerns worldwide.
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