Credited from: SCMP
A coalition of 25 Democratic-led US states has filed a lawsuit against the Trump administration, alleging that the latest round of tariffs imposed on goods from 60 trading partners exceeds the president's legal authority. The tariffs, which range from 10% to 12.5%, were enacted under Section 301 of the Trade Act of 1974, allegedly to address unfair trade practices related to forced labor, according to South China Morning Post, CBS News, and BBC.
The lawsuit, filed in the US Court of International Trade, claims that the new tariffs serve as a pretext for re-imposing previous tariffs that were deemed illegal by the US Supreme Court in February. New York Attorney General Letitia James stated that the administration is attempting to "illegally raise taxes on families and businesses" while California Attorney General Rob Bonta echoed this sentiment, calling it a misuse of power, as reported by CBS News, India Times, and Al Jazeera.
The new tariffs affect over 99.4% of US imports and particularly target trading partners such as the European Union and Canada. The lawsuit indicates the tariffs are arbitrary and designed without sufficient basis, violating existing laws concerning trade practices. In response, White House spokesperson Kush Desai defended these tariffs as a legal measure necessary to address unreasonable trade practices that burden US commerce, citing the need to combat forced labor, according to South China Morning Post and BBC.
Democratic governors, including New York’s Kathy Hochul, criticized the new tariffs as a burden on working families, contending that they represent a tax on essential goods, thus raising consumer costs during an already challenging economic climate. The legal battle follows a series of similar challenges that have proven partially successful in the past, and stakeholders remain vigilant on the implications of these tariffs on US economic policy, especially in light of previous Supreme Court rulings that have curtailed the administration's tariff powers, according to CBS News and India Times.