Massive Lawsuit Against Trump Over New Wave of Tariffs

A coalition of 25 states sued the Donald Trump administration on Monday over its new round of global tariffs. The attorneys general argue that the measure is illegal and will raise the cost of living across the country.

The lawsuit was filed before the U.S. International Trade Court. The states are seeking to suspend the tariffs, declare them invalid, and order reimbursement of tariffs already paid by importers.

The case opens a new legal front against the White House’s trade policy. It also reignites debate over the scope of presidential power to impose taxes on imports without clearer congressional approval.

What Tariffs Are in Dispute?

The new tariffs range between 10% and 12.5% for most affected products. The measure covers imports from 60 countries and economies, according to the lawsuit filed by the states. The plaintiffs argue that those countries represent 99.4% of the total volume of goods the United States buys from abroad. In other words, the impact would not be marginal, but systemic for the economy.

Today, 25 states led by Oregon (which also led state litigation against previous Trump tariffs) filed lawsuit challenging Trump’s massive new Section 301 tariffs. This is 3rd case against Section 301 tariffs. See my discussion here for more: https://t.co/pnuCkWpY1R

— Ilya Somin (@IlyaSomin) August 4, 2026

New York Attorney General Letitia James said that Trump is trying once again to raise “taxes” on families and businesses. She also accused the administration of seeking an alternate route after losing in previous court cases. The states warn that the effect will reach very specific prices. They mention food, construction materials, household items, and everyday products.

What Is the States’ Basis?

The dispute centers on Section 301 of the 1974 Trade Act. The states argue that the White House used that provision to remake tariffs already challenged by the courts. According to the lawsuit, the USTR accelerated investigations into 60 economies without mandatory individual consultations. The attorneys general also question why nearly identical rates were imposed on countries with very different trade realities.

Twenty-five states sued the Trump administration Monday over its latest tariffs, calling them a pretext for replacing import taxes the Supreme Court struck down in February.https://t.co/m8MywevStl

— PBS News (@NewsHour) August 3, 2026

The trade office argues that the measure responds to forced labor practices in international supply chains. However, the states say that this justification bears no rational relationship to such broad global tariffs.

Additionally, the lawsuit accuses inconsistencies in the exemptions. It notes that the USTR excluded some products, such as frozen beef from Brazil, even though it had previously linked them to forced labor. This contradiction strengthens the states’ argument. They maintain that the administration is not correcting a specific practice, but substituting one annulled policy for another nearly identical one.

How Does the White House Respond?