Global Edition
Global Edition
UK Edition
EU Edition
US Edition

Understand the story, not the spin.

Markets

25 Democratic-led states sue to block Trump's new tariffs

Published 3 August 2026

A coalition of 25 Democratic-led states filed a lawsuit on Monday, August 3, seeking to block the Trump administration's latest round of tariffs on goods from 60 trading partners, arguing the president has once again exceeded his legal authority. The lawsuit, filed in the U.S. Court of International Trade in New York, targets tariffs of 10% and 12.5% that took effect on July 24.

The administration imposed the tariffs under Section 301 of the Trade Act of 1974, citing allegations that the targeted countries were not doing enough to prevent the export of goods produced with forced labor. The tariffs affect over 99% of U.S. imports and include major economies such as the European Union, India, Canada, and China. Some countries, including Canada and Mexico, face the lower 10% rate on goods not covered by the U.S.-Mexico-Canada Agreement.

The states, including Oregon and New York, contend the administration is using forced labor concerns as a pretext to reimpose a sweeping global tariff policy that courts have already ruled unlawful. They argue the new tariffs lack a rational connection to the stated policy goal and were enacted through rushed investigations without required...

Now playing
0:00 / 0:00