NewsMacro25 Democrat-Led States Sue Trump Administration Over New Tariffs, Alleging Illegal End Run Around Supreme Court

25 Democrat-Led States Sue Trump Administration Over New Tariffs, Alleging Illegal End Run Around Supreme Court

Author: Fox Business Markets·

Key Takeaways

  • •A coalition of 25 states led by New York Attorney General Letitia James filed a lawsuit on Monday challenging the Trump administration's latest tariffs.
  • •The states contend that the new tariffs are an attempt to bypass a Supreme Court ruling that overturned President Trump's earlier import tariffs.
  • •The administration imposed the tariffs on 59 countries and the EU under Section 301 of the Trade Act of 1974, citing their failure to combat forced labor in supply chains.
  • •White House spokesman Kush Desai defended the tariffs as a legally durable enforcement tool used to address unreasonable trade practices that burden U.S. commerce.
  • •President Trump publicly criticized the Supreme Court on Truth Social, claiming its rulings on tariffs and birthright citizenship have cost the United States trillions of dollars.
25 Democrat-Led States Sue Trump Administration Over New Tariffs, Alleging Illegal End Run Around Supreme Court

The Trump administration is facing a lawsuit from 25 Democrat-led states challenging its latest round of tariffs, filed on Monday.

New York Attorney General Letitia James is leading the joint legal action, which argues that the tariffs imposed last month represent an attempt to bypass the Supreme Court's ruling against President Donald Trump's earlier import tariffs.

"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," James said in a statement.

The latest tariffs target 59 countries and the European Union, with the administration asserting that these trading partners are committing forced labor violations by failing to crack down on imports produced through forced labor.

States joining New York in the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington, and Wisconsin. The broad coalition reflects the wide-ranging economic effects tariffs can have on state economies, from agricultural exporters to manufacturing supply chains and consumer prices.

Earlier this year, the Trump administration directed the U.S. Trade Representative to investigate 60 trading partners for unfair trade practices. The investigation concluded that the 59 countries and the EU were not taking sufficient action to crack down on imports produced by forced labor. The administration then invoked Section 301 of the Trade Act of 1974, which authorizes the president to impose tariffs on countries found to be engaging in unfair trade practices. Section 301 has been a primary U.S. trade enforcement mechanism for five decades, used by administrations of both parties, most extensively during Trump's first term as the legal basis for tariffs on hundreds of billions of dollars of Chinese imports.

"The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden U.S. commerce," White House spokesman Kush Desai told NBC News.

"A foreign country's failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens U.S. commerce, including American workers, and must be addressed. Section 301 tariffs have proven to be a legally durable tool since the president's first term, and they remain so now," Desai added.

The lawsuit was filed days after Trump publicly criticized the Supreme Court over its rulings on his tariff policies and birthright citizenship, arguing that the decisions had cost the United States "trillions."

"Does anybody have any idea how much Money and Prestige the United States Supreme Court has cost our Nation with their negative Rulings on Birthright Citizenship and TARIFFS?" Trump wrote in a Wednesday post on Truth Social. "The answer, TRILLIONS AND TRILLIONS OF DOLLARS!" he said.