25 States Sue, Call Trump Tariffs a 'Pretext'
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- 25 Democratic-led states, including Oregon and New York, filed suit in the US Court of International Trade on Monday targeting new double-digit tariffs on 60 trading partners imposed over forced-labor concerns.
- The states argue the tariffs are a pretext to re-impose levies the Supreme Court ruled illegal in February, when it struck down Trump's use of the International Emergency Economic Powers Act (IEEPA).
- The new levies were imposed under Section 301 of the Trade Act of 1974, a different statute aimed at unfair trade practices, and now cover more than 99% of US imports.
- The tariffs took effect just after temporary 10% worldwide tariffs expired at midnight on July 24 — the fallback the administration had used after losing at the Supreme Court.
- New York Attorney General Letitia James accused the administration of "once again trying to illegally raise taxes on families and businesses," while White House spokesman Kush Desai called the levies an "appropriate and legal response to unfair trade practices."
- After the February SCOTUS ruling, the administration was forced to set up a refund process for importers who had paid the earlier IEEPA tariffs, compounding the pressure to find an alternative revenue mechanism.
Why it matters: By switching from IEEPA to Section 301 after losing at the Supreme Court, the administration is now fighting 25 states in the Court of International Trade over tariffs covering 99% of US imports. The outcome will determine whether the executive branch can route around SCOTUS using a new legal vehicle — or must redesign its trade policy once more.
