25 States Sue Trump Administration Over New Tariffs, Alleging Attempt to Circumvent Supreme Court Ruling

A coalition of 25 Democratic-led states, co-led by Oregon, Arizona, and California, has sued the Trump administration over new global tariffs ranging from 10% to 12.5%. The lawsuit alleges the administration is using forced labor as a pretext to circumvent a February 2026 Supreme Court ruling that invalidated its previous tariff scheme. While the White House defends the Section 301 tariffs as a legally durable tool to protect U.S. commerce, critics argue the broad levies act as an unlawful tax on American families.

25-state lawsuit against tariffs

• ▪The 25 states suing the Trump administration are New York, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington, and Wisconsin.
• ▪A coalition of 25 states filed a lawsuit on August 3, 2026, to block the Trump administration's new global tariffs.
• ▪The lawsuit alleges that the Trump administration is using forced labor as a pretext to reinstate import taxes previously struck down by the Supreme Court.

Section 301 forced-labor tariffs

• ▪The Trump administration imposed tariffs ranging from 10% to 12.5% on imported goods from dozens of countries, citing their failure to address forced labor.
• ▪The U.S. Trade Representative's investigation into 60 trading partners lasted two months, compared to an eight-month probe into China in 2018.
• ▪The new tariffs were implemented under Section 301 of the Trade Act of 1974 and cover countries that provide over 99% of United States imports.

Supreme Court IEEPA ruling

• ▪The United States Supreme Court ruled in February 2026 that the International Emergency Economic Powers Act did not authorize the Trump administration's sweeping tariffs.

Tariff refunds to importers

• ▪Following the Supreme Court defeat, the Trump administration implemented temporary 10% worldwide tariffs, which expired in July 2026.
• ▪The Supreme Court's 6-3 decision forced the Trump administration to send refunds to importers who had paid the invalidated tariffs.

Legal challenges to tariffs

• ▪Small businesses filed two separate lawsuits in the Court of International Trade in July 2026 challenging the Section 301 tariffs.
• ▪The small business lawsuits argue that the government failed to establish specific cases against each economy or explain how the tariffs would eliminate forced labor.

Trump manufacturing revival strategy

• ▪President Donald Trump argues that high tariffs protect American workers, revive domestic manufacturing, and boost the United States economy.
• ▪President Donald Trump previously used Section 301 tariffs against China during his first term, which successfully survived challenges in court.