25 states file lawsuit against administration over forced-labor tariffs

Twenty-five states filed a lawsuit on Monday challenging the administration's recent tariffs on imports from 59 countries and the European Union. The states contend the tariffs, imposed under Section 301 of the Trade Act of 1974, are being used to replace the import taxes the Supreme Court invalidated in February.

The tariffs, ranging from 10% to 12.5%, target goods produced with forced labor and affect countries that account for about 99% of U.S. imports. New York Attorney General Letitia James said the administration is attempting to raise taxes on families and businesses after the Supreme Court decision. The lawsuit is joined by attorneys general from 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 administration defended the measures, with White House spokesman Kush Desai stating that the United States is using lawful authority to address foreign practices that burden U.S. commerce and that Section 301 has been a durable legal tool since the president’s first term.

Legal scholars note that while Section 301 has been used historically for trade actions, the current tariffs represent the third attempt by the administration to impose worldwide duties after earlier efforts under different statutes were struck down. The outcome of the case will hinge on whether the government can demonstrate that the tariffs meet the statutory requirements for investigation, consultation and public record.