25 US states sue Trump administration over new tariffs

Aug 3, 2026

A coalition of 25 states is suing the Trump administration over new tariffs of 10-12.5% on 60 trading partners. The states argue the tariffs, justified by "forced labor" concerns, are an illegal pretext to reinstate levies previously struck down by the Supreme Court in February. The White House defends the action as a lawful use of the Trade Act of 1974 to protect U.S. commerce. The lawsuit was filed in the U.S. Court of International Trade.

25-state lawsuit against tariffs

▪The states, nearly all led by Democrats, are asking the court to halt the tariffs, declare them unlawful, and order refunds.
▪A coalition of 25 US states sued the Trump administration on August 3, 2026, over a new round of tariffs.
▪The lawsuit was filed in the U.S. Court of International Trade in New York.

Supreme Court tariff defeat

▪In February 2026, the U.S. Supreme Court struck down a previous round of tariffs imposed by President Trump.
▪The tariffs struck down by the Supreme Court had been imposed under the International Emergency Economic Powers Act (IEEPA).
▪Following the Supreme Court ruling, the administration implemented a temporary 10% global levy that expired on July 24, 2026.

Importer refunds from ruling

▪The Supreme Court's decision forced the administration to establish a refund process for importers who had paid the IEEPA tariffs.
▪The states' lawsuit argues that President Trump imposed the new tariffs to make up for revenue lost from the previous refunds.

Section 301 forced-labor tariffs

▪In July 2026, the Trump administration imposed new tariffs of 10% to 12.5% on 60 trading partners, including the European Union.
▪The tariffs affect countries that provide over 99% of American imports.
▪The administration's stated justification is the alleged failure of targeted countries to stop exports of goods produced with forced labor.
▪The new tariffs were imposed under Section 301 of the Trade Act of 1974.

Legal challenges to tariffs

▪The states' lawsuit argues the administration is using forced labor as a pretext to reinstate tariffs previously ruled illegal.
▪In addition to the states' lawsuit, small businesses also filed two lawsuits in July 2026 challenging the Section 301 tariffs.
▪White House spokesman Kush Desai defended the tariffs, stating the U.S. is using its "lawful authority" to address unreasonable trade practices.

Section 301 precedent from China

▪A law professor stated that Section 301 has been used by presidents for decades and has "real guardrails" like investigation and consultation requirements.
▪During his first term, President Trump successfully used Section 301 to impose tariffs on China, and those tariffs survived court challenges.