25 US States Sue Trump Administration Over New Tariffs On 60 Countries

A coalition of 25 US states has filed a lawsuit in the US Court of International Trade in New York to block and declare unlawful the new Section 301 tariffs.

These contested duties, which range from 10 per cent to 12.5 per cent, took effect on July 24, 2026. They apply to nearly 60 trading partners, including India, covering almost all US imports.

The lawsuit seeks to block the tariffs, declare them unlawful and compel the federal government to refund duties already paid by importers.

The coalition of suing states is bipartisan, consisting of 23 Democratic governors and two Republican governors from Nevada and Vermont, according to AFP.

Pretext For Illegal Tariffs

Officials hastily investigated under Section 301 of the Trade Act of 1974 to safeguard the president's trade policies following previous court losses, the states contended.

The state coalition complaint stated that there is "no rational fit" between allegations of forced labour and the blanket tariffs imposed on nearly all US imports.

"The Tariff Action is arbitrary, capricious, and contrary to law," the complaint stated. It added, "The Plaintiff States oppose forced labour in all its forms and support protections for workers around the globe. But the Administration cannot use forced labour as a pretext to continue its illegal tariff scheme."

New York Attorney General Letitia James criticised the approach. "After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs," James said, according to AP.

The Legal Battle History

Trump had previously imposed sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), arguing that America’s persistent trade deficit constituted a national emergency.

In February 2026, the US Supreme Court ruled that the President could not rely on the IEEPA to levy such import duties, forcing the administration to refund collected duties.

Following the Supreme Court ruling, the White House temporarily imposed a 10 per cent global tariff, which expired on July 24, 2026.

Section 301 of the Trade Act of 1974 authorises the US Trade Representative (USTR) to impose tariffs against countries found to engage in unfair trade practices, which the administration is now using to justify the duties.

White House Defends Tariffs

The Trump administration has rejected the lawsuit, insisting the tariffs rest on firm legal footing. "The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies and practices that burden US commerce," White House spokesperson Kush Desai said.

Desai added, "A foreign country’s failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour is unreasonable and burdens US commerce, including American workers, and must be addressed. Section 301 tariffs have proven to be a legally durable tool since the President’s first term, and they remain so now."

Trump continues to defend higher tariffs as a key pillar of his economic agenda to revive American manufacturing, protect domestic workers and gain leverage in trade negotiations.