Twenty-five Democratic-ruled US states have launched a legal challenge against the Trump administration's new tariffs on 60 global economies, including India.
Key Points
- A coalition of 25 Democratic-ruled US states has sued the Trump administration over new tariffs on 60 economies, including India.
- The lawsuit argues that the tariffs, replacing expired global levies, are illegal taxes and lack proper justification under Section 301 of the Trade Act of 1974.
- States contend the tariffs will increase costs for American consumers and businesses, despite the administration's claim of combating forced labour.
- India is among the 17 countries facing a 10-per cent tariff rate, having previously amended its foreign trade policy regarding forced labour.
- The lawsuit highlights that the tariffs are arbitrarily imposed and contain product exemptions that undermine their stated goal.
A group of 25 Democratic-ruled states has moved a US court against President Donald Trump's decision to impose tariffs on 60 economies accounting for 99.4 per cent of American imports.
Last month, the US imposed a fresh round of tariffs ranging between 10 per cent and 12.5 per cent on these 60 countries, citing failure on the issue of forced labour, to replace the 10 per cent global levies that expired on July 24.
The 25 states moved the US Court of International Trade on Monday against the Trump administration for again implementing tariffs on several countries, contending that it will raise costs for consumers and businesses nationwide.
States Challenge Trump's Tariff Reinstatement
New York Attorney General Letitia James, Governor Kathy Hochul and the coalition of the Democratic states 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.
India Among Nations Affected By New Levies
India, along with 16 other countries, faces a 10-per cent tariff rate. Earlier, the US had proposed a 12.5-per cent tariff rate for India.
The reprieve followed India amending its foreign trade policy on June 14 to ban imports of goods made with forced labour.
Legal Basis Of Tariffs Questioned By States
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.
It said the administration has violated the law by failing to follow section 301 requirements for imposing tariffs and implementing new tariffs without any clear connection to their stated goal of combatting forced-labour practices.
"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.
"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.
Lawsuit Cites Arbitrary Tariff Imposition
The lawsuit details how the tariffs are arbitrarily imposed, with little connection to the administration's stated goal of combatting 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.
The lawsuit explains that the Office of the United States Trade Representative failed to engage with testimony from countries and comments submitted during the shortened development of these tariffs, which overwhelmingly contradicted the administration's claims that the tariffs would address the harms of forced labour.
