U.S. States Sue Trump Administration Over New Tariffs

Twenty-five states have filed a lawsuit against the Trump administration following the announcement of new tariffs. These states argue that the tariffs serve as a way to replace import taxes that the Supreme Court nullified in February. Last month, the U.S. imposed double-digit tariffs on 59 countries and the European Union. The administration claims these nations have not sufficiently addressed imports produced through forced labor.

The new tariffs were implemented as temporary tariffs expired. New York Attorney General Letitia James stated, “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.” President Trump believes that higher tariffs can boost American manufacturing. Last year, he reversed a long-standing U.S. policy that favored lower tariffs and free trade.

Trump invoked the 1977 International Emergency Economic Powers Act (IEEPA) to impose high tariffs, claiming the trade deficit was a national emergency. However, the Supreme Court decided that IEEPA did not allow for such tariffs, resulting in refunds to importers. To regain lost revenue, Trump initiated temporary 10% global tariffs, which expired on July 24.

Currently, the administration is using Section 301 of the Trade Act of 1974 to impose new tariffs. This provision allows the President to tax imports from countries engaged in unfair trade practices. In his first term, Trump used Section 301 to impose significant tariffs on China, which stood up in court. This time, the administration used Section 301 to justify tariffs ranging from 10% to 12.5% against countries responsible for 99% of American imports.

“The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden U.S. commerce,” said White House spokesman Kush Desai. He added that the failure of foreign countries to stop imports of goods produced with forced labor creates burdens on U.S. commerce and must be addressed.

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