A coalition of 25 Democratic states has filed a federal lawsuit against President Donald Trump’s administration, challenging the legality of sweeping tariffs imposed on dozens of countries—including the UK, China, and the European Union—over forced labour allegations.
The legal challenge, filed on Monday, escalates the ongoing trade policy battle and marks the latest confrontation over the administration’s aggressive use of Section 301 of the 1974 Trade Act.
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The states argue that the Trump tariffs, ranging from 10% to 12.5%, are unconstitutional and economically damaging to American families and businesses.
‘Arbitrary and Capricious’
In a legal document obtained by the BBC, the coalition of Democratic attorneys general asserts that the Trump administration’s tariff decision is “arbitrary, capricious, and contrary to law.” The states are seeking to block the import duties, which cover a staggering 99.4% of all U.S. imports, according to the Office of the U.S. Trade Representative (USTR).
The lawsuit specifically targets the administration’s use of forced labour provisions, stating that the White House “cannot use forced labour as a pretext to continue its illegal tariff scheme.”
“The tariffs the USTR imposed are so broad that they defy the USTR’s own stated aims and make a mockery of the statute used to justify them,” the legal filing reads.
Responding to the lawsuit, White House spokesman Kush Desai defended the administration’s trade agenda, insisting that the U.S. is “using its lawful authority” to combat unfair trade practices.
Desai emphasized the legal durability of Section 301 tariffs, noting that similar duties imposed on China during Trump’s first term survived court challenges. “Section 301 tariffs have proven to be a legally durable tool since the president’s first term, and they remain so now,” he stated.
The administration argues that foreign countries failing to address the importation of goods produced with forced labor are engaging in “unreasonable” practices that burden American businesses.
Investigation
A key point of contention in the lawsuit is the speed of the administration’s investigation. While the 2018 probe into China’s forced labour practices took eight months, the recent investigation into 60 trading partners was completed in just two months.
The lawsuit argues that “typically, a Section 301 investigation into even a single economy takes much longer to complete,” accusing the administration of rushing the process to push through a politically motivated tariff agenda.
New York Governor Kathy Hochul condemned the tariffs, calling them “nothing more than a tax on hardworking families.” Oregon Attorney General Dan Rayfield echoed the sentiment, stating: “We’re all paying the price for these unlawful tariffs, not foreign governments.”
The legal action follows a recent U.S. Supreme Court decision that struck down many of Trump’s previous “Liberation Day” tariffs, resulting in tens of billions of dollars in refunds to U.S. companies.
Global Reaction
International trading partners have also voiced strong opposition. Brazil and Japan have called the measures “unjustified,” while China’s Foreign Ministry spokesperson Mao Ning dismissed the tariffs as an “excuse for political manipulation.”
Analysts suggest the lawsuit could pose a “formidable challenge” to the tariffs. Alex Capri, a business lecturer at the National University of Singapore, told the BBC that there is a lack of credible evidence linking foreign labor practices to harm against U.S. firms. He predicts that “carve-outs and walk-backs” may eventually weaken the impact of the tariffs.
What’s Next
The current 10% global tariffs—implemented as a temporary measure after the Supreme Court ruling—expired in July. However, the administration is already investigating 16 additional countries over claims of manufacturing overcapacity, signaling that more tariffs could be on the horizon.
As the legal battle unfolds, businesses and consumers remain caught in the crossfire of an escalating global trade war, with the courts now serving as the primary battleground for U.S. trade policy.
BBC