25 U.S. States Sue Trump Administration Over New Import Tariffs

 

Washington, Aug. 4 — A coalition of 25 U.S. states has filed a lawsuit challenging President Donald Trump's administration over newly imposed import tariffs targeting nearly 60 countries, including the European Union, arguing that the measures exceed legal authority and violate U.S. trade laws.

Led by California Attorney General Rob Bonta, along with attorneys general from Arizona and Oregon, the coalition filed the case in the U.S. Court of International Trade. The lawsuit contends that the tariffs, introduced under Section 301 of the Trade Act of 1974, were imposed through an unlawful process and will ultimately increase costs for American consumers and businesses.

According to the California Attorney General's Office, the Trump administration implemented the new tariffs on Monday, covering imports from more than 80 trading partners that account for approximately 99.4 percent of total U.S. imports.

The states argue that the administration rushed the Section 301 investigation, completing a review of nearly 60 economies in just two and a half months. They say such investigations normally take years and are conducted on a country-by-country basis. The lawsuit alleges that the process violated both the Trade Act and the Administrative Procedure Act.

Attorney General Bonta also accused the administration of attempting to reintroduce trade measures that had previously been blocked by the courts by relying on a different legal justification.

The lawsuit notes that earlier tariff actions taken under the International Emergency Economic Powers Act had already been ruled unlawful by the courts. It also claims that a previous attempt to impose broad tariffs under Section 122 of the Trade Act of 1974 was unsuccessful.

The legal challenge includes California, Arizona, Oregon, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Virginia, Vermont, Washington and Wisconsin, with the governors of Kentucky and Pennsylvania also joining the case.

Last month, the Office of the U.S. Trade Representative (USTR) announced new import tariffs ranging from 10 to 12.5 percent on nearly 60 economies under Section 301. The administration said the decision was based on findings that those countries had failed to take sufficient action to prevent imports produced through forced labor.

Under the new tariff structure, India was placed in the 10 percent tariff category along with the United Kingdom, Canada, Indonesia, Mexico and Bangladesh. Although India had initially been considered for a 12.5 percent tariff, officials said the lower rate was adopted after cooperation with the United States on labor practices.

According to the USTR, economies that have implemented or committed to enforcing import restrictions on goods produced through forced labor will face a 10 percent tariff. Certain products from the European Union, Taiwan, Japan, South Korea and Switzerland will be subject to tariffs ranging from 10 to 12.5 percent, while most other economies covered by the investigation will face a 12.5 percent tariff.