Twenty-five U.S. states sue in latest challenge to Trump’s tariffs

Several states allege that tariff investigations carried out by US Trade Representative Jamieson Greer's office were prejudged and pretextual. Photo by Aaron Schwartz /AFP

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Twenty-five U.S. states, nearly all led by Democrats, sued Donald Trump’s administration on Monday over wide-ranging tariffs, arguing that the president had exceeded his authority in imposing the new levies on dozens of countries.

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The states filed suit at the U.S. Court of International Trade in New York, asking that judges halt the implementation of the tariffs, declare them unlawful and order the government to issue refunds.

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“There is no rational fit between the purported problem of forced labour in international supply chains and the blanket global tariffs the USTR imposed,” the coalition of states argued in a court filing, referring to the U.S. Trade Representative’s office.

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The challenge is related to Trump’s latest salvo of tariffs of between 10 and 12.5 percent imposed against 60 trading partners — forming the bulk of U.S. imports — last month.

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The tariffs were imposed after probes by the USTR’s office over allegations of “forced labour,” conducted under Section 301 of the Trade Act of 1974.

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Since taking office for his second term, Trump has upended global trade by imposing wide-ranging tariffs — at sometimes eye-watering levels — against Washington’s friends and foes alike.

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U.S. President Donald Trump speaks to the press aboard Air Force One on Sunday. Photo by AARON SCHWARTZ /AFP via Getty Images

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Trump has argued that U.S. trading partners have been taking advantage of the world’s largest economy, and has sought to use tariffs as leverage to strike new trade deals.

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On Monday, the White House hit back at the latest challenge to Trump’s tariffs, arguing the government move was legal.

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“The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden U.S. commerce,” said Kush Desai, a White House spokesperson, in a statement.

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“Section 301 tariffs have proven to be a legally durable tool since the President’s first term, and they remain so now.”

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Earlier challenges

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Trump’s first round of tariffs, imposed under the International Emergency Economic Powers Act, was struck down by the U.S. Supreme Court in February.

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He replaced those with a 10-percent global levy, which expired in July.

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The new Section 301 tariffs replaced that levy, taking effect as the 10-percent tariff expired on July 24.

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Of the 25 states in the suit, 23 have Democratic governors while two — Nevada and Vermont — are led by Republicans.

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In their court filing, the states argued that the Section 301 probes were “a pretextual and unlawful effort to exert unfettered tariff power.”

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The document lays out a timeline of Trump administration officials’ statements, arguing that the investigations were rushed and prejudged when they were initiated.