25 US Democratic States Sue, Claiming "Section 301 Forced Labor Tariffs are Illegal"

25 US Democratic States Sue, Claiming "Section 301 Forced Labor Tariffs are Illegal"

"Replaced reciprocal tariffs invalidated by Supreme Court ruling... Beyond presidential taxing authority"

25 states, led by Democratic governors in the US, including New York and California, filed a lawsuit on the 3rd (local time), arguing that the Donald Trump administration's 'Section 301 forced labor tariffs' are illegal.

According to the US Federal Court of International Trade, these states requested the court in their complaint filed today to halt the tariff measures imposed by the Trump administration on major trading partners based on Section 301 of the Trade Act, stating that they are illegal as they exceed the president's taxing authority.

Previously, two small and medium-sized enterprises, spice importer Burlap & Barrel and watch retailer Collective Horology, also filed a lawsuit on the 24th of last month, the day the forced labor tariffs were imposed, requesting their cancellation.

The 25 states argued in their complaint that President Trump and federal government officials illegally used Section 301 of the Trade Act to replace reciprocal tariffs that had been invalidated by a Supreme Court ruling.

New York Attorney General Letitia James issued a statement after filing the lawsuit, saying, "However the Trump administration tries to justify it, the law and our Constitution make it clear that the president does not have the authority to impose blanket tariffs."

Previously, the US Supreme Court ruled in February that the reciprocal tariffs imposed by the Trump administration on various countries based on the International Emergency Economic Powers Act (IEEPA) were illegal.

Accordingly, the Trump administration temporarily imposed a 10% global tariff on various countries worldwide under Section 122 of the Trade Act, but its effect expired at midnight on the 24th of last month.

In response, the US Trade Representative's Office newly imposed tariffs of 10-12.5% on major trading partners on the 24th of last month, applying Section 301 of the Trade Act to address the issue of importing products produced by forced labor. South Korea was also effectively subjected to a 12.5% tariff.