Twenty-five Democratic-led states have filed a lawsuit against the Trump administration over new double-digit tariffs imposed on 60 trading partners, claiming the president has exceeded his legal authority.
What the Lawsuit Claims
The lawsuit, filed in the US Court of International Trade on Monday, targets tariffs ranging from 10% to 12.5% imposed on countries including the UK, China, and the European Union. The administration justified the levies under Section 301 of the 1974 US Trade Act, citing partners' failure to address forced labor practices.
However, the states argue the tariffs use "forced labor as a pretext" to re-impose levies that were already struck down by the Supreme Court. The complaint notes that the last time Trump used Section 301 for sweeping tariffs in 2018, officials investigated forced labor claims for eight months before acting.
Which States Are Involved
All 25 states involved have Democratic attorneys general or governors. The coalition includes New York, Oregon, California, Illinois, and other major states. New York Governor Kathy Hochul said: "The Supreme Court has made it clear that this administration cannot ignore the law to impose sweeping tariffs."
How This Affects American Consumers
The tariffs affect more than 99% of US imports, meaning virtually every product Americans buy could see price increases. The new duties came into effect in July, just as temporary 10% worldwide tariffs expired.
Several affected trading partners have pushed back. Brazil and Japan called the measures "unjustified," while China's foreign ministry described them as an "excuse for political manipulation."
Background: The Supreme Court Ruling
Many of Trump's original "Liberation Day" tariffs from April 2025 were struck down by the Supreme Court in February 2026, which ruled that the International Emergency Economic Powers Act did not authorize tariffs. The decision led to tens of billions of dollars in refunds to importers.
Eager to make up lost revenue, the administration imposed temporary 10% worldwide tariffs, which expired in July. The latest round under Section 301 represents the administration's third attempt at broad trade levies.
What Happens Next
The Court of International Trade will need to decide whether to issue an injunction blocking the tariffs while the case proceeds. A similar lawsuit from small businesses was filed last Friday.
Meanwhile, the administration is investigating 16 countries for manufacturing overcapacity, suggesting more tariffs could be on the horizon. The outcome of this case could have major implications for US trade policy and consumer prices.