WASHINGTON – Recently, twenty-five states took legal action against the Trump administration regarding new tariffs. They argue that these tariffs are just a way to replace import taxes that the Supreme Court deemed illegal earlier this year.
Last month, the U.S. government implemented significant tariffs on goods from 59 countries and the European Union. This decision was made under the claim that these countries were not doing enough to prevent imports made by forced labor. These tariffs were introduced just when temporary tariffs, which had been put in place following the Supreme Court’s ruling, were set to expire.
New York Attorney General Letitia James expressed concerns, stating, “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.”
The states joining New York in this lawsuit include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington, and Wisconsin.
Trump has argued that imposing high tariffs will help boost American manufacturing. He overturned a long-standing U.S. policy favoring lower tariffs and more open trade. Citing the International Emergency Economic Powers Act (IEEPA), he initially imposed these tariffs, claiming that America’s trade deficit was a national emergency.
However, the Supreme Court ruled that IEEPA did not give the authority to impose such tariffs. This led to the administration having to refund importers who had already paid these tariffs. To recover lost revenue, Trump introduced temporary 10% worldwide tariffs, but these expired on July 24.
Now, the administration is using a different strategy by invoking Section 301 of the Trade Act of 1974. This section allows the president to impose tariffs and other sanctions on countries engaged in unfair trade practices. Trump previously used Section 301 to impose substantial tariffs on China during his first term, which survived legal challenges.
The new forced-labor tariffs range from 10% to 12.5% and target countries responsible for 99% of U.S. imports. White House spokesperson Kush Desai emphasized that these tariffs are intended to eliminate unreasonable practices that hinder U.S. commerce.
The states’ lawsuit is not the only legal challenge against these tariffs. Two other lawsuits were also filed in July by small businesses in the Court of International Trade, arguing that the government failed to provide adequate evidence for the tariffs and how they would eliminate the practices they target.
Barry Appleton, a law professor and co-director of New York Law School’s Center for International Law, mentioned that the administration’s repeated attempts to impose similar tariffs could complicate their defense in court. While Section 301 has been used effectively in the past, the administration must demonstrate that it followed the legal guidelines set by Congress, which involve thorough investigations and consultations.
As this legal battle unfolds, it remains to be seen how the courts will respond to the administration’s use of tariffs and the arguments presented by the states and businesses challenging these measures.
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Anderson reported from New York.
