Twenty-five US states, predominantly led by Democrats, filed a lawsuit on Monday, August 4th, 2026, against the administration of President Donald Trump. The suit challenges the legality of new tariffs ranging from 10% to 12.5% imposed on goods from 60 countries, including major trading partners such as the UK, China, Japan, Brazil, Taiwan, and the European Union.

The tariffs, which took effect in July 2026, were enacted under Section 301 of the 1974 US Trade Act following investigations by the Office of the US Trade Representative (USTR) into allegations of forced labour in international supply chains. The duties cover approximately 99% of US imports.

The coalition argues that the tariffs are a pretext to replace import taxes that were struck down by the Supreme Court earlier in the year. In a legal filing, the states described the tariffs as "arbitrary, capricious, and contrary to law," asserting there is "no rational fit between the purported problem of forced labor in international supply chains and the blanket global tariffs the USTR imposed." They further stated that the Trump administration "cannot use forced labour as a pretext to continue its illegal tariff scheme."

New York Attorney General Letitia James said the administration was "once again trying to illegally raise taxes on families and businesses with a new round of tariffs," while Oregon Attorney General Dan Rayfield added that despite previous legal defeats, the administration was attempting to "inflict more on working families and homegrown businesses."

The states filed the suit at the US Court of International Trade in New York, seeking to halt the tariffs' implementation, declare them unlawful, and order refunds for importers.

In response, White House spokesperson Kush Desai defended the tariffs, stating, "The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden US commerce." Desai emphasized that Section 301 tariffs have been a "legally durable tool since the President's first term, and they remain so now." He added that any foreign country's failure to address the importation of goods produced with forced labour was "unreasonable" and must be addressed.

This legal challenge highlights ongoing tensions over trade policy and the use of tariffs as a tool to address human rights concerns in global supply chains.

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