A coalition of 25 U.S. states has filed a lawsuit against President Donald Trump’s administration over a fresh round of tariffs on imports from dozens of countries, arguing that the measures are illegal and will place a heavier financial burden on American consumers and businesses.
The tariffs, ranging from 10 to 12.5 per cent, were imposed under Section 301 of the U.S. Trade Act of 1974.
The Trump administration said the move targets countries it believes have failed to adequately address the use of forced labour in their supply chains, including major trading partners such as the United Kingdom, China and the European Union.
But in a lawsuit filed on Monday, the Democratic-led states accused the administration of stretching its legal authority beyond what the law allows.
They argued that the White House was using concerns over forced labour as a cover for a much broader trade agenda.
According to the court filing, the tariffs are “arbitrary, capricious and contrary to law.”
“The tariffs imposed by the USTR are so broad that they undermine the very purpose of the law used to justify them,” the states argued, insisting that forced labour concerns cannot be used as a pretext for what they described as an unlawful tariff policy.
The White House dismissed the lawsuit, maintaining that the administration acted within its legal powers. White House spokesman Kush Desai said the government was using its lawful authority to shield American businesses from unfair trade practices.
He argued that countries that fail to tackle imports linked to forced labour are engaging in unreasonable trade practices that warrant action by the United States.
The tariffs, which took effect in July, cover about 99.4 per cent of U.S. imports, according to the Office of the U.S. Trade Representative.
The policy has drawn criticism from several countries. Brazil and Japan have described the tariffs as unjustified, while China’s Foreign Ministry accused Washington of using forced labour allegations as an excuse for political manipulation, despite a temporary pause in trade tensions between the two countries.
Several U.S. officials also condemned the policy. New York Governor Kathy Hochul described the tariffs as “nothing more than a tax on hardworking families,” while Oregon Attorney General Dan Rayfield said ordinary Americans, not foreign governments, would ultimately bear the cost.
The legal battle is the latest challenge to Trump’s efforts to reshape U.S. trade policy since returning to office in January 2025.
Earlier tariff measures introduced under his administration, including the controversial “Liberation Day” tariffs, were struck down by the U.S. Supreme Court, resulting in billions of dollars in refunds to affected companies.
Despite the legal setbacks, Trump has continued to defend tariffs as a key tool for protecting American jobs and strengthening the economy.
His administration is also investigating 16 countries over allegations of manufacturing overcapacity, raising the possibility of further trade restrictions.
