Twenty-five states sue over Section 301 tariffs in federal court
Twenty-five states and additional litigants filed federal lawsuits challenging Section 301 tariffs as illegal consumer taxes.
Event / Economy
Trump administration imposes new Section 301 tariffs on 59 countries and EU after Supreme Court strikes down previous IEEPA-based tariffs. 25 states file lawsuit challenging the new tariffs as illegal circumvention of the Court's February 2025 ruling.
2026-08-13 to 2026-11-10 · UTC publication dates
Coverage begins 4 Aug, 01:23 UTC
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Twenty-five states led by New York, California, and others filed a lawsuit in the U.S. Court of International Trade on Monday challenging the new Section 301 tariffs. The states argued that the tariffs exceeded the administration's authority, were a pretext for replacing tariffs the Supreme Court struck down, and that the investigation supporting them was rushed and overly broad. The plaintiff states are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington, and Wisconsin.
Trump administration temporary 10% worldwide tariffs that were imposed after the Supreme Court struck down IEEPA-based tariffs expired at midnight on July 24, 2025. These temporary measures had been used to maintain tariff revenue after the Court's February ruling.
California Attorney General Rob Bonta stated that tariffs are taxes and that the American people cannot and should not shoulder the extra costs that come from the President's failed and illegal economic policy. He noted that the states' lawsuit argues the tariffs are not genuinely designed to address forced labor but are an effort to replace tariffs the Supreme Court struck down.
The Trump administration imposed new double-digit tariffs ranging from 10% to 12.5% on 59 countries and the European Union, effective July 25, 2025. The tariffs target countries the administration said have not done enough to crack down on imports produced by forced labor. These tariffs affect countries that provide 99% of American imports.
New York Attorney General Letitia James stated that the administration is attempting to illegally raise taxes on families and businesses with a new round of tariffs after losing at the Supreme Court. She characterized the action as the third attempt by the Trump administration to impose illegal tariffs, with the states taking the administration to court over the third misuse of power.
The Trump administration imposed the new tariffs under Section 301 of the Trade Act of 1974, which permits the president to impose import taxes and other sanctions against countries found to engage in unfair trade practices. The administration argued that countries' failure to impose and effectively enforce prohibitions on forced labor imports constitutes an unreasonable burden on U.S. commerce.
The U.S. Supreme Court ruled in February 2025 that the International Emergency Economic Powers Act (IEEPA) did not authorize tariffs, invalidating tariffs President Trump had imposed invoking that statute. The Court's decision forced the administration to send refunds to importers who had paid those tariffs.
White House spokesman Kush Desai defended the tariffs, stating that the United States is using lawful authority under Section 301 to address unreasonable acts by foreign countries that burden U.S. commerce. Desai noted that Section 301 tariffs have proven legally durable since the President's first term and remain so. The administration argues that a foreign country's failure to impose and enforce prohibitions on forced labor imports is unreasonable and burdens U.S. commerce and American workers.
In July 2025, two other lawsuits were filed in the U.S. Court of International Trade by small businesses challenging the Section 301 tariffs. These lawsuits argue that the government did not adequately establish its case against each specific economy and did not explain how the tariffs will eliminate the specified practice they are being levied for, as required by Section 301.
Twenty-five states and additional litigants filed federal lawsuits challenging Section 301 tariffs as illegal consumer taxes.
Supreme Court invalidated IEEPA tariffs; administration shifted to Section 301 authority for new trade restrictions.