A coalition of 25 states filed a lawsuit Monday against the Trump administration, challenging the legality of its latest round of sweeping tariffs imposed under Section 301 of the Trade Act of 1974. The import duties target 60 economies with rates ranging from 10% to 12.5%.
California Attorney General Rob Bonta, who led the effort, called the tariffs “President Trump’s third attempt to illegally impose tariffs that would make life more expensive for American families and small businesses.” The lawsuit was filed in the U.S. Court of International Trade.
The states argue that the tariffs are not genuinely designed to address forced labor concerns, as the administration claims. Instead, they allege the levies are an effort to replace import taxes that the Supreme Court struck down in February. The Trump administration said trading partners had not done enough to crack down on imports produced with forced labor.
Joining California in the suit were Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington and Wisconsin. All are led by Democrats.
The states also argue that an investigation led by the Office of the U.S. Trade Representative to set the stepped-up tariffs was rushed and overly broad. Section 301 authorizes a president to impose tariffs and sanctions on countries found to engage in unfair trade practices.
White House spokesman Kush Desai defended the president’s tariff policies, saying the United States is “using its lawful authority to obtain the elimination of unreasonable acts, policies and practices that burden U.S. commerce.” He added that Section 301 tariffs have “proven to be a legally durable tool since the president’s first term.”
Despite the legal challenge, tariff rates have actually fallen this year. The U.S. effective tariff rate dropped to 7.4% from 9.4% after the administration replaced temporary Section 122 duties with the new Section 301 tariffs, according to Fitch Ratings.
The lawsuit represents the latest legal battle over Trump’s trade policies. The president has argued that tariffs are necessary to revive U.S. manufacturing, reduce the nation’s trade deficit and generate federal revenue. The case could have significant implications for the administration’s broader economic agenda heading into the 2026 midterm elections.
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