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A group of 25 Democratic-led US states has sued over Donald Trump's new Section 301 tariffs on 60 trading partners, including India. The case opens another legal battle over the White House's use of trade law after earlier tariff setbacks in court.
The case is the newest test of Trump's tariff strategy, which has survived despite suffering repeated setbacks in US courts. (File Photo)
UPDATED: Aug 4, 2026 01:51 IST
US President Donald Trump's latest tariff push has landed back in court. A coalition of 25 Democratic-led US states filed a lawsuit on Monday challenging the latest tariffs on imports from 60 trading partners, including India. The states argued that the Trump administration was once again exceeding its legal authority despite a series of court rulings over similar measures.
The lawsuit, filed in the US Court of Trade in New York, targets tariffs of 10 per cent to 12.5 per cent that took effect last month under Section 301 of the Trade Act of 1974. The Trump administration says the duties are aimed at countries that have failed to do enough to prevent the export of goods made with forced labour.
The case is the newest test of Trump's tariff strategy, which has survived despite suffering repeated setbacks in US courts.
US STATES SAY TRUMP IS DEFYING COURT RULINGS
The lawsuit was brought by 25 states, including Oregon and New York, all led by Democratic governors or attorneys general. The states argue that Trump is attempting to revive sweeping import taxes that courts have already ruled unlawful by relying on a different legal justification. According to the complaint, Section 301 has historically been used to target specific countries or industries accused of unfair trade practices -- not to impose broad tariffs affecting nearly all US imports.
The complaint also argues that the administration is using forced labour as a pretext to reimpose tariffs that had already been struck down by the courts.
"Despite losing every step of the way, Trump is trying yet again to inflict more chaos on working families and homegrown Oregon businesses," Oregon Attorney General Dan Rayfield said in a statement, as quoted by Reuters.
NEW TARIFFS TARGET 60 TRADING PARTNERS
The disputed tariffs were announced on July 24 and apply to imports from 60 trading partners, including the European Union and India. Some countries received lower tariff rates after strengthening enforcement measures. India, for example, saw its tariff reduced from 12.5 per cent to 10 per cent, according to a senior administration official.
Certain products, including oil, natural gas, fertilisers and goods qualifying for duty-free treatment under the US-Mexico-Canada Agreement, were exempted from the latest tariffs.
US Trade Representative Jamieson Greer defended the move when announcing the new duties.
"The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it's well past time for our trading partners to do the same."
TRUMP TURNS TO A NEW LEGAL STRATEGY
The tariffs represent Trump's newest attempt to preserve one of the central pillars of his economic agenda after earlier measures suffered significant legal setbacks. Earlier this year, the US Supreme Court ruled that the Emergency Economic Powers Act (IEEPA) did not give the president authority to impose sweeping global tariffs, striking down one of Trump's signature trade initiatives.
In response, Trump imposed temporary worldwide tariffs under Section 122 of the Trade Act of 1974. Those levies were also later ruled unlawful by the US Court of Trade, although they remained in force while the administration appealed.
With those options under legal challenge, the administration has now turned to Section 301 of the Trade Act of 1974, a law traditionally used to respond to unfair or discriminatory trade practices by foreign governments.
Trump relied on the same provision during his first term to impose tariffs on China, and those measures survived legal challenges because they were targeted at a specific country.
Trump has continued to champion tariffs as a major tool for reviving US manufacturing and reshaping global trade despite repeated court setbacks. Last year, he argued that America's long-running trade deficit constituted a national emergency, using emergency powers to impose tariffs on imports from almost every country before those measures were blocked by the courts.
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Published By:
Satyam Singh
Published On:
Aug 4, 2026 01:51 IST
