25 US states sue Trump administration over 'unlawful' global tariffs

A coalition of 25 US states and commonwealths filed a lawsuit Monday in the US Court of International Trade to block the Trump administration’s latest attempt to impose sweeping global tariffs of 10% to 12.5%.

The lawsuit alleges that the Office of the US Trade Representative (USTR) utilized a "pretextual" investigation into global forced labor as a legal "guise" to reimpose trade barriers previously struck down by federal courts.

The plaintiffs argue that the USTR conducted a "rushed" investigation into 60 economies in just two and a half months, a process that typically requires over a year. The states contend that the administration predetermined the outcome, noting that the tariffs apply equally to raw materials and finished goods without regarding the prevalence of forced labor in specific markets.

“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,” New York Attorney General Letitia James said in a statement.

New York Gov. Kathy Hochul characterized the measures as a "tax on hardworking families" that will increase the cost of groceries and building materials.

"The Administration’s third attempt to impose worldwide tariffs—now through Section 301 of the Trade Act—is equally unlawful," the plaintiffs said in the court filing.

The legal complaint describes the administration's actions as "arbitrary, capricious, and contrary to law." The states assert that the executive branch is unconstitutionally attempting to wrest taxing power from Congress, noting that the "whole power of taxation rests with Congress." They further allege that the administration violated the Administrative Procedure Act.

The lawsuit seeks a court order to declare the tariffs illegal and set them aside. The participating states in the coalition are Oregon, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and Wisconsin.

The White House dismissed the coalition’s legal challenge, asserting that the administration is operating within its statutory rights.

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

He argued that foreign nations' failure to enforce labor standards directly harms American workers and must be addressed.

Desai maintained that Section 301 tariffs have functioned as a “legally durable tool” since US President Donald Trump's first term and remain an instrument for trade policy.