25 US States Sue Trump Admin Over Latest Tariffs as 'Pretext to Raise Taxes'

A coalition of 25 US states has launched a lawsuit against the Trump administration over its latest tariffs. The lawsuit claims that the tariffs are a mere pretext to reinstate import taxes previously struck down by the Supreme Court in February. President Trump imposed double-digit tariffs on 59 countries and the European Union, citing their alleged failure to address imports produced by forced labor.

The states contend that this is an attempt to illegally raise taxes on families and businesses with a new round of tariffs. The lawsuit argues that the administration did not adequately establish its case against each specific economy or spell out how the tariffs will eliminate the specified practice they are being levied for, as required by Section 301.

Section 301 permits the president to impose import taxes and other sanctions against countries found to engage in unfair trade practices. The administration invoked this section to impose the forced-labor tariffs, which range from 10% to 12.5%. These tariffs hit countries that provide 99% of American imports.

The lawsuit follows two other lawsuits filed in The Court of International Trade by small businesses that also challenged the 301 tariffs. Law professor Barry Appleton stated that while Section 301 has been used before, this case will focus on whether the administration stayed within the guardrails Congress drew when implementing the law.