Donald Trump delivers remarks on reciprocal tariffs during the 'Make America Wealthy Again' event at the White House on 2 April 2025.
4 August 2026 | Washington, New York — Updated 22:30 GMT
A coalition of 25 US states sued the Trump administration on Monday over new tariffs pegged at 10% to 12.5% on goods from 60 trading partners, calling them a pretext for replacing import taxes struck down by the supreme court in February.
The states are asking the US Court of International Trade to halt the tariffs, declare them unlawful and order refunds of duties that have already been paid.
According to the states involved in the action, tariffs on 59 countries and the European Union imposed last month account for 99.4% of US imports. The Trump administration officials have charged that the countries have not done enough to crack down on imports produced by forced labor.
Welcome to the latest news — where trade policy, executive power, and legal challenges collide at the White House.
📊 TARIFF LAWSUIT — KEY NUMBERS: 25 states sue administration • Tariffs 10%-12.5% on 60 trading partners • 99.4% of US imports affected • Supreme Court struck down previous tariffs in February • Section 301 of Trade Act of 1974 invoked • UK, Australia, Canada, Japan, Taiwan, China all affected.
Coalition of 25 States Challenges Tariffs in Federal Court
"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," New York attorney general Letitia James said in a statement.
"No matter how the administration tries to justify it, the law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants," James added.
— Letitia James, New York Attorney General
In addition to New York, the states joining the action are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Virginia, Vermont, Washington and Wisconsin, along with the governors of Kentucky and Pennsylvania.
The new tariffs went into effect in July after "Liberation Day" tariffs were ruled unconstitutional in February and a new set of temporary tariffs expired.
Administration Defends Tariffs Under Section 301 Authority
The latest proposal for tariffs uses Section 301 of the Trade Act of 1974, a federal law meant to target countries that use forced labor. The new tariffs affect major trading partners including the UK, Australia, Canada, Japan, Taiwan and China.
The lawsuit follows a separate suit filed by the Liberty Justice Center on behalf of two US small businesses who argue that Trump exceeded his executive authority with the new tariffs.
— Kush Desai, White House Spokesman
The New York governor, Kathy Hochul, and the state attorney general argue that the administration's tariffs based on "a supposed investigation into countries' efforts to combat forced labor do not satisfy the requirements of Section 301", they said in a statement.
They said that the administration is using "forced labor" as an excuse to continue its policy of indiscriminately enacting damaging tariffs on a wide range of countries that lead to higher prices for their constituents.
— Kathy Hochul, New York Governor
Legal Battle Escalates as States Seek Refunds of Duties Paid
The states are asking the US Court of International Trade to halt the tariffs, declare them unlawful and order refunds of duties that have already been paid.
According to the states involved in the action, tariffs on 59 countries and the European Union imposed last month account for 99.4% of US imports. The Trump administration officials have charged that the countries have not done enough to crack down on imports produced by forced labor.
The lawsuit represents the most significant legal challenge to Trump's trade policy since the Supreme Court struck down his previous tariff authority in February, forcing the administration to find new legal justification for its sweeping import taxes.
⚖️ TARIFF LAWSUIT — KEY DETAILS
- States suing: 25 (led by New York)
- Tariff rate: 10% to 12.5%
- Countries affected: 60 trading partners
- Imports affected: 99.4% of US imports
- Legal basis: Section 301, Trade Act of 1974
- Court: US Court of International Trade
- Previous ruling: Supreme Court struck down "Liberation Day" tariffs (Feb 2026)
- Major partners affected: UK, Australia, Canada, Japan, Taiwan, China
📊 TARIFF LAWSUIT: THE NUMBERS THAT DEFINE THE MOMENT
⚖️ LAWSUIT AT A GLANCE
States suing
Countries affected
Imports affected
Tariff rate
🗣️ KEY VOICES
Letitia James (NY AG):
"The law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants."
Kathy Hochul (NY Governor):
"President Trump's illegal tariffs are nothing more than a tax on hardworking families, driving up the cost of groceries, household essentials, building materials, and countless everyday goods."
Kush Desai (White House):
"Section 301 tariffs have proven to be a legally durable tool since the President's first term, and they remain so now."
🗺️ STATES JOINING THE LAWSUIT
🌍 MAJOR TRADING PARTNERS AFFECTED
UK
Australia
Canada
Japan
Taiwan
China
EU
⚖️ THE FINAL VERDICT: TARIFFS, EXECUTIVE POWER, AND LEGAL CHALLENGES
✅ WHAT'S HAPPENING:
- 25 states sue over new 10%-12.5% tariffs
- Tariffs affect 60 trading partners, 99.4% of imports
- States seek to halt tariffs, declare them unlawful
- States also demand refunds of duties already paid
- Section 301 of Trade Act of 1974 invoked
⚠️ THE CHALLENGES:
- Supreme Court struck down previous tariffs (Feb 2026)
- States say administration using "forced labor" as pretext
- Separate suit filed by Liberty Justice Center
- White House defends tariffs as "lawful authority"
- States argue president lacks power to impose sweeping tariffs
"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," New York Attorney General Letitia James said, leading a coalition of 25 states suing the Trump administration over tariffs on 60 trading partners. The states are seeking to halt the 10%-12.5% tariffs, declare them unlawful, and order refunds of duties already paid. The White House defended the move, saying: "Section 301 tariffs have proven to be a legally durable tool since the President's first term." The legal battle now heads to the US Court of International Trade.
— News Analysis
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