25 States Sue Over Trump’s New Forced-Labor Tariffs on 59 Countries, Calling Them a Pretext for Levies the Supreme Court Struck Down

Twenty-five states sued the administration on Aug. 3, 2026, over tariffs imposed the previous month on 59 countries and the European Union under Section 301 of the Trade Act of 1974, on the finding that those trading partners had not done enough to block imports made with forced labor. The levies run from 10% to 12.5% and cover countries supplying 99% of American imports. The states, led by attorneys general including New York’s Letitia James, argue the forced-labor rationale is a pretext for replacing the emergency-powers tariffs the Supreme Court struck down in February and the temporary 10% worldwide tariffs that expired at midnight on July 24. It is the coalition’s third tariff suit, after challenges to the IEEPA and Section 122 rounds. The case goes to the U.S. Court of International Trade.

The dispute is over how much a president may substitute one tariff authority for another after losing on the first, and whether a stated statutory justification can be examined for pretext. Section 301 has historically survived judicial review, including for the China tariffs of Trump’s first term, which makes this round harder to unwind than its predecessors. The states argue the cost falls largely on American consumers through higher import prices.

White House spokesman Kush Desai said the U.S. “is using its lawful authority” against practices that burden U.S. commerce and called Section 301 “a legally durable tool.” The tariffs remain in effect while the case proceeds.