US states sue Trump over tariffs on 60 economies, say costs will rise

Washington,UPDATED: Aug 4, 2026 05:34 IST

A coalition of 25 Democratic-led US states has moved the US Court of Trade against President Donald Trump over his decision to impose tariffs on 60 economies that account for 99.4 per cent of American imports. The states have argued that the move will raise costs for consumers and businesses across the country and have asked the court to declare the tariffs illegal.

Last month, the US imposed a fresh round of tariffs of between 10 per cent and 12.5 per cent on these 60 countries, saying the action was linked to failures on the issue of forced labour. The new duties replaced the 10 per cent global levies that expired on July 24. India, along with 16 other countries, faces a 10 per cent tariff rate after the US had earlier proposed a 12.5 per cent rate for India.

New York Attorney General Letitia James, Governor Kathy Hochul and the coalition of Democratic states filed the case on Monday. In a statement, James said, "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." The reprieve for India followed its amendment of the foreign trade policy on June 14 to ban imports of goods made with forced labour.

According to the statement, the administration says it is using section 301 of the Trade Act of 1974 to tackle forced labour in global trade. The lawsuit, however, argues that this is a pretext to impose the same broad tariffs that the administration has repeatedly tried and failed to bring in. It also says the administration violated the law by not following section 301 requirements and by bringing in new tariffs without a clear link to its stated goal of combating forced-labour practices.

James said, "No matter how the administration tries to justify it, the law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants." California Attorney General Rob Bonta said, "Tariffs are taxes, and the American people cannot and should not shoulder the extra costs that come from the President's failed and illegal economic policy -- no matter how much the President wants them to."

The lawsuit says the tariffs were imposed arbitrarily and have little connection with the administration's stated goal of tackling forced labour. It also argues that product exemptions built into the tariffs weaken that claim. According to the filing, the administration's investigation report identified only three products made with forced labour to justify tariffs on dozens of countries.

The lawsuit further says the Office of the United States Trade Representative did not properly engage with testimony from countries and comments submitted during the shortened process used to develop the tariffs. It says those submissions overwhelmingly contradicted the administration's claim that the tariffs would address the harms of forced labour. Overall, the states have asked the court to strike down the tariffs, saying they are unlawful and would increase costs across the US.

With PTI Inputs

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