25 US states challenge Trump administration's customs tariffs

A coalition of 25 U.S. states has filed a lawsuit challenging the Trump administration's recent imposition of customs tariffs. These tariffs, set at 10-12.5%, target goods from 59 countries and the European Union. The administration justified the tariffs by claiming these nations have not done enough to prevent the import of goods produced through forced labor.

The tariffs took effect immediately after temporary measures expired. These temporary tariffs were put in place following a Supreme Court decision that invalidated earlier tariffs. The states involved in the lawsuit include Arizona, Delaware, Hawaii, Illinois, California, Kentucky, Colorado, Connecticut, Massachusetts, Maine, Maryland, Michigan, Minnesota, Nevada, New York, New Jersey, New Mexico, Oregon, Pennsylvania, Rhode Island, Washington, Vermont, Virginia, Wisconsin, and North Carolina. Notably, most of these states are governed by Democrats, with Nevada and Vermont being Republican-led exceptions.

The states argue that the administration lacks the legal authority to implement these tariffs. They cite the International Emergency Economic Powers Act of 1977, asserting it does not grant the president the power to levy such duties. This legal challenge follows a previous instance where the Supreme Court ruled against the administration's use of the 1977 act for imposing tariffs, forcing the government to refund duties paid by importers. To recoup these losses, the administration had initially imposed a temporary 10% tariff on global imports, which expired on July 24.

In establishing the latest tariffs, the administration invoked Section 301 of the Trade Act of 1974. This section allows the president to impose import duties and other sanctions on countries deemed to engage in unfair trade practices. The Trump administration previously utilized Section 301 to impose significant tariffs on China, which were upheld in court. Small businesses in the U.S. have also challenged these new tariffs in the International Trade Court.