Trump tariffs face lawsuit from 25 US states

Twenty-five US states sued the Trump administration on Monday over tariffs of 10 to 12.5 percent on 60 trading partners, arguing that President Donald Trump exceeded his authority.

The states filed the case at the US Court of International Trade in New York. They asked judges to halt implementation of the tariffs, declare them unlawful and order the government to issue refunds.

The coalition argued in a court filing that there was “no rational fit” between the stated concern about forced labor in international supply chains and what it described as blanket global tariffs imposed by the US Trade Representative's office.

The tariffs were imposed after USTR probes into forced-labor allegations under Section 301 of the Trade Act of 1974. The states called the probes “a pretextual and unlawful effort to exert unfettered tariff power” and said the tariff action was “arbitrary, capricious, and contrary to law.”

White House spokesman Kush Desai defended the tariffs, saying the United States was using lawful authority to address policies and practices that burden US commerce. He said Section 301 tariffs had proved legally durable since Trump's first term.

The Section 301 tariffs took effect on July 24, replacing a previous 10-percent global levy. Trump's first round of tariffs, imposed under the International Emergency Economic Powers Act, was struck down by the US Supreme Court in February.

Of the 25 states in the lawsuit, 23 have Democratic governors. Nevada and Vermont are led by Republicans.

Trump has argued that US trading partners have taken advantage of the United States and has used tariffs as leverage in trade negotiations. His separate sector-specific tariffs on steel, automobiles and other goods were imposed under different legal authorities and have not been affected by recent legal challenges.