A group of 25 Democratic-led states has filed a lawsuit against President Donald Trump’s revised tariff regime, which includes a 10% duty on imports from India, arguing that the levies are illegal and will raise costs for consumers and businesses. The lawsuit, filed in the US Court of International Trade, seeks to block tariffs imposed on 60 economies.
Last month, the US imposed a fresh round of tariffs ranging from 10% to 12% on these 60 countries, citing concerns over forced labour. The new tariff replaces the 10% global levies that expired on July 24.
India, along with 16 other countries, faces a 10% tariff rate. Earlier, the US had proposed a 12.5 per cent tariff rate on India. The reprieve came after India amended its foreign trade policy on June 14 to ban imports of goods made using forced labour.
‘Trump admin once again trying to illegally raise taxes’
On Monday, the 25 states challenged the Trump administration’s latest tariffs in the US Court of International Trade, arguing that the new tariffs would increase costs for consumers and businesses. New York Attorney General Letitia James, Governor Kathy Hochul and others are asking the Court of International Trade to declare these tariffs illegal.
“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,” James said in a statement.
‘American people cannot and should not shoulder the extra costs’
While the administration claims to be using section 301 of the Trade Act of 1974 to combat forced labour in global trade, the lawsuit argues that this is a pretext for imposing the same sweeping tariffs the administration has repeatedly tried and failed to enact, the statement said.
The lawsuit also says the administration broke the law by failing to follow the rules under Section 301 before imposing the tariffs and by failing to show how the new duties would help curb forced labour.
“No matter how the administration tries to justify it, the law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants,” the New York attorney general said, as reported by PTI.
“Tariffs are taxes, and the American people cannot and should not shoulder the extra costs that come from the President’s failed and illegal economic policy — no matter how much the President wants them to,” California Attorney General Rob Bonta said in a statement.
The lawsuit details how the tariffs are arbitrarily imposed, with little connection to the administration’s stated goal of combating forced labour. It contends that the tariffs contain product exemptions that undermine their supposed goal.
The administration’s report on its investigation identified just three products made with forced labour to justify tariffs on dozens of countries.
