In brief
Twenty‑five states have filed a federal lawsuit against the Trump administration, challenging a 10‑12.5% tariff on goods from 60 countries cited for forced labour. The states argue the rules are arbitrary, capricious and violate U.S. law, while the White House defends them as necessary to protect U.S. workers and curb exploitation abroad. The tariffs, imposed under Section 301 of the 1974 Trade Act, cover roughly 99.4% of U.S. imports, raising concerns about the economic ripple effects. Foreign governments, including Brazil, Japan and China, have called the measures unjustified, flagging tensions in global trade relations. The lawsuit comes amid a broader campaign of trade wars under Trump’s “Liberation Day” tariffs, many of which were struck down by the Supreme Court.
25 US states have taken the Trump administration to federal court over a new set of tariffs, which the governor coalition claims are unlawful and harmful to American businesses.
The states argue that the 10–12.5% duties—applied to goods from 60 trading partners—have been imposed without proper legal grounds and are intended to punish countries for alleged forced labour practices. The moves target major partners such as the United Kingdom, China and the European Union, as well as other nations that have been accused of enabling exploitation.
The lawsuit, filed on Monday, declares the tariffs “arbitrary, capricious and contrary to law” while the White House maintains they are legitimate measures under the 1974 Trade Act’s Section 301 to address forced labour.
Under the tariffs, approximately 99.4% of U.S. imports would face new duties. State officials say the policy threatens American farmers, manufacturers and middle‑class families, arguing the duties are a tax designed for the elderly and poor rather than a means to protect employment.
Foreign governments have responded badly: Brazil and Japan describe the measures as unjustified, while China called them a manipulation of politics. Tokyo and Beijing—already in a trade war with Washington—have called for a cooling of these tensions, noting the added tariffs have stalled negotiations.
This legal challenge marks the most recent action in a series of trade policy moves by the Trump administration, which began in 2025. Earlier tariffs were struck down by the Supreme Court, triggering refunds of tens of billions to U.S. firms. A new set of duties has implicated 60 countries, but further sanctions may loom if investigations into manufacturing overcapacity continue.
