US States Sued the Trump Administration on Monday Over New Tariffs of 10% to 12.5% on Goods From 60 Trading

The states are asking the US Court of International Trade to halt the tariffs, declare them unlawful, and order refunds of duties already paid. The tariffs, imposed last month on 59 countries and the European Union, cover 99.4% of US imports, according to the states. The administration has argued the countries have not done enough to curb imports produced by forced labor.

"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, New York Attorney General Letitia James said. "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. Joining New York are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Virginia, Vermont, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania.

The tariffs took effect in July after "Liberation Day" tariffs were ruled unconstitutional and a temporary set expired. The latest proposal uses Section 301 of the Trade Act of 1974, targeting countries that use forced labor, and affects major partners including Canada, Japan, Norway, Taiwan, and China. The suit follows a separate case by the Liberty Justice Center on behalf of two small businesses.

White House spokesman Kush Desai defended the tariffs: "The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden US commerce... Section 301 tariffs have proven to be a legally durable tool since the President's first term. New York Governor Kathy Hochul and James argue the administration's "forced labor" justification does not meet Section 301 requirements, calling the tariffs "nothing more than a tax on hardworking families.