US States Sue Trump Over 'Pretext' Tariffs

Twenty-five US states have filed a lawsuit against the Trump administration over its latest tariffs, claiming they are a pretext to replace old import taxes. The new tariffs were imposed on 59 countries and the European Union, with rates ranging from 10% to 12.5%, citing forced labor concerns.

The Supreme Court had previously struck down tariffs implemented under the International Emergency Economic Powers Act (IEEPA), forcing the administration to send refunds to importers who paid them.

Trump's temporary 10% worldwide tariffs expired on July 24, and he has now tapped Section 301 of the Trade Act of 1974, which allows for import taxes against countries engaging in unfair trade practices.

The states' lawsuit argues that the administration failed to adequately establish its case against each specific economy or spell out how the tariffs will eliminate the specified practice they are being levied for. They also claim that this is the third time the administration has tried to impose similar worldwide tariffs under different statutes, which could pose a challenge in court.