A coalition of 25 Democratic-led US states filed a lawsuit against Donald Trump's administration on Monday in the US Court of International Trade, arguing that the president's latest round of tariffs on goods from 60 trading partners, like most of his earlier sweeping tariffs, exceeds his legal authority to tax imports, Reuters reported.
The lawsuit seeks to block enforcement of tariffs, have them declared unlawful, and compel the federal government to refund duties already paid by importers, according to the complaint cited by Associated Press.
ALSO READ: Trump's 200% Tariff Threat On Generic Drug Imports: What Does It Mean For India?
As reported by Reuters, the challenged tariffs were announced in late July and generally impose duties of 10% and 12.5% on imports from around 60 trading partners, including the European Union, with the administration stating that the measures were intended to address concerns over forced labour in global supply chains.
The Trump administration imposed the latest tariffs under Section 301 of the Trade Act of 1974, rather than under the International Emergency Economic Powers Act (IEEPA), which the US Supreme Court ruled in February 2026 did not authorise such broad tariffs.
According to AP, the states argue that the administration is using the forced labour justification as a pretext to revive tariffs that courts had already struck down earlier this year. As per the complaint, the administration cannot evade the Supreme Court's ruling by relying on a different legal authority without meeting statutory requirements.
New York Attorney General Letitia James, one of the officials leading the lawsuit, stated that the tariffs amount to an unlawful tax that increases costs for consumers and businesses while exceeding presidential authority.
"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. No matter how the administration tries to justify it, the law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants," James said in a statement.
The White house spokesperson Kush Desai stated that the tariffs were an appropriate and legal response to unfair trade practices in other nations, Reuters reported.
"A foreign country's failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour is unreasonable and burdens US commerce, including American workers, and must be addressed," Desai stated as cited by Reuters.
This is the latest lawsuit in a series of legal challenges to Trump's tariff policies. Separate lawsuits filed by businesses have also challenged the Section 301 tariffs, arguing that the administration exceeded the authority granted under the Trade Act and failed to comply with its procedural requirements, as reported by Reuters.
If the states ultimately prevail, the court could order the government to halt enforcement of the tariffs and refund duties collected from importers, potentially affecting billions of dollars in trade related payments.
ALSO READ: Zelenskyy Thanks US Senators For Bill Seeking 100% Tariffs On India, China Over Russian Oil
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
