WASHINGTON – A coalition of twenty-five U.S. states launched a lawsuit against the Trump administration on Monday, August 3, 2026, challenging its recently implemented tariffs. The states contend that these new import taxes are merely a “pretext” to reinstate duties that the Supreme Court had previously deemed illegal in February.
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The administration last month imposed double-digit tariffs on goods from 59 countries and the European Union. These tariffs, ranging from 10% to 12.5%, were justified by claims that the affected nations had not adequately addressed imports produced by forced labor. Notably, these new tariffs took effect precisely as a set of temporary worldwide tariffs, which President Donald Trump had initiated following the Supreme Court’s earlier ruling, expired at midnight on July 24.
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Legal Challenge and State Opposition
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New York Attorney General Letitia James articulated the core of the states’ argument, stating, “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 lawsuit, announced Monday, includes a broad geographical representation of states: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington, and Wisconsin.
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This legal action marks the third attempt by the Trump administration to impose widespread tariffs. Initially, President Trump invoked the 1977 International Emergency Economic Powers Act (IEEPA) to impose double-digit tariffs on imports from nearly every country, asserting that America’s longstanding trade deficit constituted a national emergency. However, the Supreme Court ruled that IEEPA did not authorize such tariffs, compelling the administration to issue refunds to importers.
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Following this judicial setback, the administration introduced temporary 10% worldwide tariffs, which have now expired. The current tariffs are being levied under Section 301 of the Trade Act of 1974. This statute permits the president to impose import taxes and other sanctions against countries engaged in unfair trade practices. White House spokesman Kush Desai defended the administration’s actions, stating, “The United States is using its lawful authority to obtain the elimination of unreasonable acts, policies, and practices that burden U.S. commerce.” Desai added that “Section 301 tariffs have proven to be a legally durable tool since the President’s first term, and they remain so now.”
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Precedent and Legal Scrutiny
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The administration’s reliance on Section 301 is significant, as President Trump successfully utilized this provision to impose substantial tariffs on Chinese imports during his first term, which withstood court challenges. The new forced-labor tariffs, affecting countries that provide 99% of American imports, are now under similar legal scrutiny.
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This lawsuit by the 25 states is not an isolated challenge. It follows two other lawsuits filed in July by small businesses in The Court of International Trade, also contesting the Section 301 tariffs. These earlier lawsuits argue that the government failed to adequately establish its case against each specific economy or clearly articulate how the tariffs would eliminate the targeted unfair trade practices, as required by Section 301.
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Barry Appleton, a law professor and co-director of New York Law School’s Center for International Law, noted that the repeated attempts to impose similar worldwide tariffs under different statutes, and their “nearly copy-pasted” nature, could present a challenge for the administration to defend in court. However, Appleton also highlighted the historical robustness of Section 301. Unlike the novel statutes previously employed, Section 301 has been used by presidents for decades and was built with “real guardrails: investigation, consultation, a public record.” He concluded that the government’s defense would not be about a lack of power, but rather about staying “inside the lines Congress drew,” making it “a real fight, not a formality, and it is the one that will decide this case.”
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President Trump has consistently advocated for high tariffs as a means to revive American manufacturing, a stance that has reversed decades of U.S. policy favoring lower tariffs and freer trade. This latest legal battle underscores the ongoing tension between the administration’s protectionist trade agenda and the legal and economic challenges posed by states and businesses.
