US states accuse Trump administration of ‘sham’ tariff probe

A coalition of 25 Democratic-led states filed a lawsuit against the Trump administration on Monday, contending President Donald Trump overstepped his powers by imposing tariffs on 60 U.S. trading partners. The complaint, lodged in the U.S. Court of International Trade, challenges tariffs of 10% or 12.5% on most goods imported from these economies, which account for 99.4% of U.S. imports. The states are seeking an injunction to halt the tariffs, a declaration of their unlawfulness, and refunds of duties already paid.

The administration's latest round of tariffs aims to preserve Trump's broad tariff regime, following two earlier versions that were rejected by courts. The states accuse the administration of using Section 301 of the Trade Act of 1974 and concerns about forced labor as a pretext to recreate nearly identical global duties. White House spokesperson Kush Desai defended the tariffs, stating they are a lawful means to address unreasonable acts, policies, and practices that harm U.S. commerce.

The lawsuit contends that U.S. Trade Representative Jamie Marston Greer, who rushed investigations into the 60 economies, bypassed required consultations, and failed to justify uniform tariff rates for economies with diverse policies. The complaint argues that Section 301 permits trade action only after investigating a country's unfair practices and requires tariffs to be tailored to address those issues. The states also claim the USTR did not establish benchmarks for countries to meet in order to have the duties lifted.

New York Attorney General Letitia James criticized the tariffs as a tax on hardworking families, warning they would increase the costs of everyday goods. The lawsuit also highlights the timing of the tariffs, which were announced just before the expiration of temporary duties under Section 122 of the Trade Act, allowing Trump's tariff regime to continue uninterrupted.