States Challenge New Tariffs by Trump Administration

On August 3, twenty-five states initiated legal action against the Trump administration, questioning the legitimacy of recent tariffs. The states argue these tariffs serve as a substitute for import taxes that the Supreme Court nullified in February.

In the prior month, the United States enacted significant tariffs on 59 countries and the European Union. The rationale given was these entities had not effectively mitigated imports originating from forced labor practices. This move coincided with the expiration of temporary tariffs President Donald Trump had employed following the Supreme Court’s decision.

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, stated New York Attorney General Letitia James.

Last year, Trump reversed longstanding U.S. policies favoring lower tariffs and free trade. Citing the 1977 International Emergency Economic Powers Act (IEEPA), he instituted double-digit tariffs, arguing that America’s trade deficit constituted a national emergency. However, the Supreme Court ruled that tariffs weren’t warranted under IEEPA, leading to refunds for importers.

In response to financial losses, Trump subsequently applied temporary 10% global tariffs, which terminated on July 24. Now, by invoking Section 301 of the Trade Act of 1974, a more enduring approach is adopted, allowing import taxes on countries engaging in unfair trade practices.

Image: President Donald Trump during a 2025 event at the White House, outlining new tariffs. (Photo by Mark Schiefelbein/AP Photo)

The administration also employed Section 301 to impose tariffs ranging from 10% to 12.5% on nations responsible for 99% of American imports. The United States is using its lawful authority to eliminate unreasonable policies that burden U.S. commerce, explained White House spokesperson Kush Desai. These tariffs, Desai noted, aim to press foreign governments to crack down on goods produced with forced labor, which impacts U.S. commerce.