A coalition of 25 Democratic-led states filed a lawsuit against the Trump administration on August 3, 2026, in the U.S. Court of International Trade. The states argue that President Trump exceeded his authority by imposing tariffs of 10% or 12.5% on goods from 60 U.S. trading partners, which account for 99.4% of U.S. imports.
The states are seeking to halt the tariffs, declare them unlawful, and obtain refunds for duties already paid. New York Attorney General Letitia James stated that the administration is attempting to illegally raise taxes on families and businesses through these tariffs.
The lawsuit centers on the administration's use of Section 301 of the Trade Act of 1974, which the states claim was misapplied to recreate tariffs that had previously been rejected by courts. White House spokesperson Kush Desai defended the tariffs, stating that they are necessary to address issues related to forced labor in foreign supply chains.
The complaint alleges that U.S. Trade Representative Jamieson Greer rushed investigations into the 60 economies, failing to conduct necessary consultations and provide justification for the uniform tariff rates imposed. The states argue that the Section 301 permits trade actions only after thorough investigations of specific countries' unfair practices.
The lawsuit also highlights exemptions made by the USTR, such as the exclusion of frozen beef from Brazil, which was cited as connected to forced labor. New York Governor Kathy Hochul remarked that the tariffs would increase costs for everyday goods.
This lawsuit follows a previous legal challenge from a group of small businesses arguing that the administration cannot use new legal authority to impose tariffs that have been invalidated by the Supreme Court.