25 states sue over Trump administration's latest tariffs, citing Supreme Court ruling

WASHINGTON (AP) — Twenty-five states sued the Trump administration Monday over its latest tariffs, calling them a pretext for replacing import taxes the Supreme Court struck down in February.

The United States last month imposed double-digit tariffs on 59 countries and the European Union, charging that they had not done enough to crack down on imports produced by forced labor. The new tariffs took effect just as the clock ran out on temporary tariffs President Donald Trump had turned to after the Supreme Court defeat.

"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," said New York Attorney General Letitia James.

Trump, who argues that high tariffs will revive American manufacturing, last year overturned decades of U.S. policy that favored lower tariffs and ever-freer trade. Invoking the 1977 International Emergency Economic Powers Act, or IEEPA, he imposed double-digit tariffs on imports from almost every country, saying America's longstanding trade deficit amounted to a national emergency.

But the Supreme Court ruled that IEEPA did not authorize tariffs. The decision forced the administration to send refunds to importers who'd paid the tariffs. Eager to make up the lost revenue, Trump turned to temporary 10% worldwide tariffs. But they expired at midnight July 24.

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Now he's tapping more durable tariffs under Section 301 of the Trade Act of 1974, which permits the president to impose import taxes and other sanctions against countries found to engage in unfair trade practices. Trump used Section 301 to impose big tariffs on China in his first term, and they survived court challenges.

Where the Trump administration is imposing new tariffs on goods. Image by AP Digital Embed

The administration invoked Section 301 to impose the forced-labor tariffs, which range 10% to 12.5% and hit countries that provide 99% of American imports.

"The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden U.S. commerce," White House spokesman Kush Desai said. "A foreign country's failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens U.S. commerce, including American workers, and must be addressed. Section 301 tariffs have proven to be a legally durable tool since the President's first term, and they remain so now."