25 US States Led by Democrats Sue, Claiming "Section 301 Forced Labor Tariffs are Illegal"

25 US States Led by Democrats Sue, Claiming "Section 301 Forced Labor Tariffs are Illegal"

"Replaced reciprocal tariffs invalidated by Supreme Court ruling... beyond presidential taxation authority"

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

According to the U.S. 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, arguing that they exceed the president's taxation authority and are thus illegal.

Previously, two small businesses, spice importer Burlap & Barrel and watch retailer Collective Horology, also filed a lawsuit in court 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 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, "No matter how 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, in February, the U.S. Supreme Court ruled that reciprocal tariffs imposed by the Trump administration on various countries based on the International Emergency Economic Powers Act (IEEPA) were illegal.

Following this, the Trump administration temporarily imposed a 10% global tariff on all countries worldwide under Section 122 of the Trade Act, but its effect expired at midnight on June 24th.

Consequently, the U.S. Trade Representative's Office applied Section 301 of the Trade Act, citing the import of products made with forced labor, and newly imposed tariffs of 10-12.5% on major trading partners on June 24th. South Korea was also effectively subjected to a 12.5% tariff.