25 States Sue Trump Administration Over New Forced-Labor Tariffs

Office of the United States Trade Representative

Coverage spread: 2 sources — 1 left · 1 international

Lean ratings via AllSides / Media Bias-Fact-Check. How this works.

Where they agree

  • 25 Democratic-led states sued the Trump administration over new tariffs of 10%-12.5% on goods from 59 countries and the EU, covering 99.4% of US imports.
    The tariffs were imposed under Section 301 of the 1974 Trade Act, ostensibly to punish countries for failing to curb forced-labor imports, and took effect in July.
    States argue the investigation was rushed (about two months for 60 economies versus eight months for China alone in 2018) and call the tariffs an unlawful pretext following the Supreme Court’s February ruling against the “Liberation Day” tariffs.
    The White House, via spokesman Kush Desai, defends the tariffs as lawful and durable, citing their survival in Trump’s first term.
    The Guardian gives the full list of participating states and explicitly frames the suit as targeting a replacement for tariffs already struck down by the Supreme Court in February.
    BBC includes more international reaction, quoting Brazil, Japan and China’s Mao Ning calling the tariffs unjustified or political manipulation.
    The Guardian notes a separate, parallel lawsuit from the Liberty Justice Center on behalf of small businesses, which BBC does not mention.
    BBC highlights analyst skepticism about how countries could prove they’ve addressed forced-labor concerns, a angle absent from the Guardian’s account.

What the lawsuit says

A coalition of 25 states, led by attorneys general including New York’s Letitia James, filed suit on Monday in the US Court of International Trade against the Trump administration’s latest round of tariffs. The duties, ranging from 10% to 12.5%, took effect in July and apply to goods from 59 countries plus the European Union, covering an estimated 99.4% of all US imports. The states named in the action include New York, California, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Virginia, Vermont, Washington and Wisconsin, along with the governors of Kentucky and Pennsylvania.

The states are asking the court to halt the tariffs, declare them unlawful, and order refunds of duties already collected. Their filing calls the move “arbitrary, capricious, and contrary to law” and argues the administration is using forced-labor concerns as a “pretext” to revive a tariff scheme that resembles the “Liberation Day” tariffs the Supreme Court struck down in February.

The legal mechanism behind the tariffs

The new tariffs rely on Section 301 of the Trade Act of 1974, a law meant to let the US retaliate against countries that fail to curb imports made with forced labor. Trump used the same provision against China during his first term, and those tariffs survived court challenges. The administration argues the tool remains legally sound: White House spokesman Kush Desai said the US is “using its lawful authority” to eliminate practices that “burden US commerce, including American workers,” and that a country’s failure to police forced-labor goods is “unreasonable” and must be addressed.

The states counter that the process behind this round of tariffs was rushed and overbroad. They note that Trump’s original 2018 Section 301 investigation into China alone took about eight months, while the new investigation covering 60 trading partners — including the UK, Australia, Canada, Japan, Taiwan and China — was completed in roughly two months. The lawsuit argues that timeline undercuts the claim that officials seriously investigated forced-labor practices in each economy, and that the tariffs are “so broad they defy the USTR’s own stated aims.”

Reaction from officials and affected countries

New York Governor Kathy Hochul called the tariffs “nothing more than a tax on hardworking families.” Attorney General James said the administration is “once again trying to illegally raise taxes on families and businesses” after losing at the Supreme Court, adding that the Constitution does not give the president power to impose sweeping tariffs on any country he chooses. Oregon Attorney General Dan Rayfield said the administration is inflicting “chaos” on working families and homegrown businesses despite repeated legal losses, arguing that Americans, not foreign governments, are bearing the cost.

Several targeted trading partners have pushed back. Brazil and Japan’s governments both called the tariffs “unjustified.” China’s foreign ministry spokesperson Mao Ning described them as an “excuse for political manipulation,” a sign that the tit-for-tat tariff standoff between Washington and Beijing — currently paused — could resurface as a flashpoint.

How this fits into the broader tariff fight

This lawsuit is not the administration’s first tariff-related legal battle. It follows a separate suit from the Liberty Justice Center, filed on behalf of two small US businesses, arguing Trump exceeded his executive authority with the new duties. And it comes just months after the Supreme Court struck down the “Liberation Day” tariffs in February, which had been imposed under different legal authority before a temporary replacement set of tariffs expired and this Section 301-based version took effect in July.

Analysts cited in the coverage have also raised a practical question hanging over the case: how would any of the 60 named trading partners actually demonstrate they’ve adequately addressed forced-labor concerns, given no clear standard has been laid out? That ambiguity is likely to be central to how the Court of International Trade weighs the states’ claim that the tariffs are a legal workaround rather than a genuine labor-policy tool.

Sources

Featured photo: World Trade Organization via Wikimedia Commons (CC BY-SA 2.0)

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