A coalition of 25 US states has filed a lawsuit against the Trump administration, challenging the legality of a new set of tariffs imposed on imports from several countries.
The lawsuit, filed on Monday, August 3, argues that the administration exceeded its authority by introducing the new import duties, which were implemented under Section 301 of the Trade Act of 1974.
The tariffs affect goods from 60 economies, with rates ranging between 10 per cent and 12.5 per cent.
Leading the legal action, California Attorney General Rob Bonta accused the administration of misusing its powers and argued that the tariffs would increase costs for American households and small businesses.
“This is President Trump’s third attempt to illegally impose tariffs that would make life more expensive for American families and small businesses,” Bonta said.
The Trump administration has defended the measures, maintaining that the tariffs are a lawful response to unfair trade practices. White House spokesperson Kush Desai said the policy aims to address concerns over imported goods linked to forced labour and protect American workers and businesses.
According to the administration, Section 301 allows the president to impose trade penalties against countries involved in practices that harm US commerce.
However, the states’ lawsuit claims the tariffs are not primarily aimed at addressing forced labour concerns but are instead an attempt to replace previous tariff measures that were rejected by the Supreme Court in February.
The states also argue that the investigation conducted by the Office of the US Trade Representative was rushed and too broad in determining the new tariff rates.
The coalition includes California, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington and Wisconsin.
President Trump has maintained that tariffs are a key part of his economic strategy, arguing that they will encourage domestic manufacturing, reduce the trade deficit and increase government revenue.
Despite recent reductions in tariff levels, trade duties remain central to the administration’s economic policies. Fitch Ratings estimates that the US effective tariff rate has declined to 7.4 per cent from 9.4 per cent after the administration replaced temporary tariff measures with the new Section 301 duties.
Source: citinews
