A group of 25 US states launched a legal challenge on Monday against the Trump administration's recently imposed tariffs on imports from 60 trading partners. The tariffs, ranging from 10% to 12.5%, took effect in July and target countries including the UK, China, Japan, Brazil, and members of the European Union.
The administration introduced these duties under Section 301 of the 1974 US Trade Act, citing the failure of these nations to adequately address forced labour in their supply chains. According to the Office of the US Trade Representative (USTR), the tariffs affect 99.4% of US imports.
In their lawsuit, the coalition of mostly Democratic states described the tariffs as "arbitrary, capricious, and contrary to law," arguing that the administration is misusing forced labour concerns as a pretext for an illegal tariff scheme. New York Governor Kathy Hochul condemned the tariffs as a burden on American families, while Oregon Attorney General Dan Rayfield emphasized that the levies hurt US businesses and consumers rather than foreign governments.
White House spokesperson Kush Desai defended the policy, stating that the US is exercising lawful authority to combat unfair trade practices linked to forced labour. However, affected countries have expressed frustration. Brazil and Japan labelled the tariffs "unjustified," and China’s foreign ministry called them a political manipulation tactic amid ongoing trade tensions.
The legal dispute follows previous tariff measures by President Trump since his return to office in January 2025, including the so-called "Liberation Day" tariffs, many of which were struck down by the US Supreme Court for overreach. The court rulings led to substantial refunds for companies that had paid the levies. Temporary tariffs that replaced those measures expired in July, coinciding with the introduction of the new duties.
Trade analysts have also raised questions about how countries can demonstrate compliance with forced labour requirements. Meanwhile, the US is investigating 16 other countries for potential manufacturing overcapacity, indicating possible further trade actions ahead.
