25 US states sue Trump administration over ‘forced labour’ tariffs, claim move exceeds presidential authority

In a joint lawsuit, 25 US states have challenged the Trump administration's new tariffs, alleging the move exceeds presidential authority. New York, California, and Illinois led the legal action, filed in the US Court of International Trade in Manhattan on Monday. Trump and his administration used Section 301 of the Trade Act of 1974, following the Supreme Court's earlier strikes down of his tariffs and their expiration.

New York Attorney General Letitia James criticized the administration, stating that the law and Constitution clearly prohibit the president from imposing tariffs on countries at his discretion. Trump's tariffs, which range from 10 to 12.5% on imports from 60 trading partner countries, allege the use of forced labor in producing certain goods.

The states argue the administration is misusing Section 301 provisions, treating the new duties as part of a broader tariff policy rather than a tailored measure authorized by Section 301. Following a February Supreme Court ruling against Trump's global tariff push, the administration imposed a new 10% global tariff under Section 122 of the Trade Act in March, which was also deemed illegal by a trade court and expired in July.

Section 301 allows the US Trade Representative to impose tariffs as a response to discriminatory trade practices by other countries against American businesses. A previous lawsuit claimed the new tariffs lack a country-wise inquiry required by the US Congress when Section 301 was adopted.