A coalition of 25 US states led by New York has filed a lawsuit against the Trump administration, arguing that its new tariffs on imports allegedly produced using forced labor are an unlawful attempt to replace the duties invalidated by the US Supreme Court in February.
The disputed tariffs, imposed under Section 301 of the Trade Act of 1974, range from 10% to 12.5% and cover 59 countries and the European Union, collectively accounting for 99% of US imports for most goods. They entered into force following the expiration of the administration's temporary 10% global tariff on July 24.
The states claim that the administration failed to establish sufficient evidence against each affected economy or explain how the tariffs would eliminate the practices cited as justification. The White House, however, maintains that Section 301 provides legally durable authority to address foreign policies and practices that burden US commerce, including inadequate enforcement against forced-labor products.
The case follows two similar lawsuits filed by small US businesses in July. While the Supreme Court previously ruled that the International Emergency Economic Powers Act did not authorize Trump's earlier tariffs, Section 301 has historically been used to impose trade measures, including duties on Chinese imports during Trump's first presidential term.
The new Section 301 tariffs are not expected to directly increase duties on steel articles and derivative steel products already subject to US Section 232 measures, as these products have been expressly exempted from the latest action. Covered steel imports will consequently remain subject to the separate Section 232 tariff regime, generally carrying an additional duty of 50%. Nevertheless, downstream iron and steel-containing products falling outside the Section 232 scope may be exposed to the new 10-12.5% tariffs, depending on their customs classification and country of origin.
