25 States Sue Trump Over New Global Forced-Labor Tariffs

A coalition of 25 U.S. states, led by the attorneys general of California, Arizona, and Oregon, filed a lawsuit in the U.S. Court of International Trade on August 3, 2026. The suit challenges new tariffs ranging from 10% to 12.5% imposed on approximately 60 trading partners, including the European Union, China, and India. The Donald Trump administration implemented these measures under Section 301 of the Trade Act of 1974, citing the failure of these nations to prohibit imports produced with forced labor.

Plaintiffs argue the forced-labor justification is a pretext to reinstate a broad tariff regime after the Supreme Court of the United States struck down previous levies in February 2026. The administration has since refunded approximately $100 billion of the $165 billion collected from those illegal tariffs. Critics and state officials contend the new duties are an illegal tax on American consumers and businesses, while the White House maintains Section 301 is a legally durable tool to eliminate unreasonable practices that burden U.S. commerce.

Beyond the global Section 301 levies, the administration also imposed 50% tariffs on $20 billion of Canadian imports using the Smoot-Hawley Tariff Act of 1930, alleging Canada discriminates against U.S. exports. This escalation follows Canada's refusal to renegotiate the USMCA. While the administration claims these policies support re-industrialization, independent analysts estimate the tariffs will cost average U.S. households between $900 and $1,100 this year.