25 US States Sue Trump Administration Over Section 301 Tariffs on 60 Trading Partners
How left and right are reading this
- Both agree
- Duties of 10% to 12.5% now touch nearly every source of U.S. imports, and the money is paid domestically by importers — a cost neither framing disputes is real.
- They split on
- Whether the story is about an executive reimposing struck-down import taxes without the investigations the statute requires, or about who holds America's trade leverage — the presidency or the courts.
The Facts
- Twenty-five U.S. states, nearly all led by Democrats, filed suit against the Trump administration on Monday in the U.S. Court of International Trade in New York over its latest round of tariffs.
- The challenged duties, imposed on July 24 under Section 301 of the Trade Act of 1974, range from 10% to 12.5% and cover 60 trading partners — described in some accounts as 59 countries plus the European Union.
- The administration justified the tariffs by saying the targeted economies had not done enough to stop imports of goods produced with forced labor.
- The states are asking the court to halt the tariffs, declare them unlawful and order the government to refund duties importers have already paid.
- According to the states' filing, the 60 economies covered by the tariffs account for 99.4% of U.S. imports, and the states argue the duties will raise costs for consumers and businesses nationwide.
- The states argue the new tariffs are a pretext for replacing import taxes the U.S. Supreme Court struck down in February, and that there is "no rational fit" between forced labor in supply chains and blanket global tariffs imposed by the U.S. Trade Representative.
- The lawsuit also alleges the administration failed to conduct the country-specific investigations and justification that Section 301 requires before imposing tariffs.
- The state suit follows earlier challenges by small U.S. businesses, which sued on the day the new tariffs took effect; states and businesses have won previous cases against Trump's global tariffs, but the administration has continued imposing new ones.
Context
What is Section 301, and why is the administration using it now?
Section 301 of the Trade Act of 1974 authorizes the president to impose tariffs and other sanctions on countries found to engage in unfair trade practices Aol,CBS News. The administration turned to it after the Supreme Court in February struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), and after the temporary 10% global levies used in the interim expired on July 24 Guardian,News18,mint.
How has the administration responded to the lawsuit?
White House spokesman Kush Desai said the United States is "using its lawful authority" to address practices that burden American businesses, adding that foreign countries' failure to deal with the importation of goods produced with forced labor was "unreasonable" and must be addressed BBC.
Which countries are affected, and what happens next?
The tariffs cover 60 economies including the United Kingdom, China, the European Union and India BBC,Hindustan Times,India Today. India currently faces a 10% rate under the Section 301 measures, with a separate investigation that could lead to additional tariffs still pending Hindustan Times,India Today. The Court of International Trade has not yet ruled on the states' requests to halt the duties or order refunds Guardian,Yahoo! Finance.
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