Twenty-Five States Sue Trump Administration Over Tariffs

A group of 25 states led by the Democratic Party have filed a lawsuit against the President Donald Trump administration on Monday, arguing that Trump does not have the legal power to impose new tariffs on imports from 60 countries and the European Union. 

The Trump administration says the tariffs are necessary because some countries manufacture products with the help of forced labour, and those products enter the US supply chain. The new tariff policy will pressure these countries to halt this practice and protect workers. 

Additionally, the White House supports the Trump administration by saying that this action is legal under Section 301 of the Trade Act of 1974. 

However, the states argue that the Trump administration is using the law incorrectly, stating that Section 301 requires the US to investigate each country individually. Instead, the government investigated 60 countries together, which gave almost all of them nearly the same tariff rate, even though each country has different policies. 

The government didn’t bother to explain why the same tariffs were appropriate for so many different countries. States believed that the administration was simply trying to bring back tariffs that the court had already rejected. 

New York Gov. Kathy Hochul said in a statement that the tariffs are “a tax on hardworking families,” saying they would increase the costs of groceries, household essentials, building materials and other everyday goods.  

The states are appealing to the court to stop the new tariff or declare the tariff illegal immediately. They also asked the court to order the government to refund tariff money that has already been collected.   

Also read: AstraZeneca & Bristol Myers Squibb in Merger Talks

The US Court of International Trade will decide whether Trump legally used Section 301 or whether the tariff can stay, and whether the government must refund any money if the tariffs are ruled illegal.