25 US States Sue Trump Administration Over New Forced-Labour Tariffs on EU, Nearly 60 Countries

On: August 4, 2026 4:17 AM
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Washington DC (US), August 4, 2026, BNN Web Staff: A coalition of 25 US states has filed a lawsuit against the Trump administration over a new round of tariffs imposed on imports from the European Union and nearly 60 other countries under measures linked to forced-labour concerns.

The states have challenged the tariffs before the US Court of International Trade, arguing that the Trump administration exceeded its legal authority and that the additional duties would increase costs for American consumers and businesses.

The lawsuit is being led by California Attorney General Rob Bonta, along with the attorneys general of Arizona and Oregon.

According to a statement issued by the California Attorney General’s Office, the administration on Monday raised tariffs on imports from more than 80 trading partners, including the European Union and nearly 60 countries. The affected economies account for around 99.4 per cent of total US imports.

The coalition has argued that the tariffs would function as additional taxes on imported goods, with the financial burden eventually being passed on to US businesses and consumers.

“President Trump is so intent on raising the cost of living for Americans that he is willing to break law after law after law to do so,” Bonta said in the statement.

The lawsuit challenges the tariffs imposed following an investigation conducted under Section 301 of the Trade Act of 1974. The administration had said the measures were aimed at countries that had failed to take adequate steps to prevent goods produced through forced labour from entering international supply chains.

However, the states have alleged that the investigation was used as a justification to bring back broad tariffs that had previously faced legal challenges.

According to the complaint, the Office of the United States Trade Representative (USTR) examined nearly 60 economies simultaneously over a period of around two-and-a-half months. The states argued that this was considerably shorter than the year-long, country-specific investigations generally carried out under Section 301.

The coalition further claimed that the investigation relied largely on broad case studies and overall economic assessments rather than detailed, country-specific findings. It argued that the process failed to meet the requirements of the Trade Act and violated the Administrative Procedure Act.

The lawsuit also referred to two earlier legal setbacks involving the administration’s tariff policies. It noted that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) had been ruled unlawful, while another attempt to introduce broad tariffs under Section 122 of the Trade Act of 1974 had also been successfully challenged before the US Court of International Trade.

Besides California, Arizona and Oregon, the legal action has been joined by the attorneys general of Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Virginia, Vermont, Washington and Wisconsin. The governors of Kentucky and Pennsylvania have also joined the lawsuit.

Last month, the USTR announced fresh tariff rates ranging from 10 to 12.5 per cent for imports from around 60 economies under Section 301 of the Trade Act of 1974.

The new duties affect several major US trading partners and were introduced following concerns raised by Washington over what it described as insufficient action against the import of goods produced using forced labour.

India has been placed in the lower 10 per cent tariff category along with 16 other economies, including the United Kingdom, Canada, Indonesia, Mexico and Bangladesh.

According to official sources cited by ANI, India was initially expected to face the higher 12.5 per cent tariff but secured the lower rate following discussions with the US over labour-related practices.

The USTR said the 10 per cent tariff applies to economies that already prohibit imports produced through forced labour, have committed to such restrictions under a Reciprocal Trade Agreement, or have introduced partial measures to prevent the entry of such goods.

A variable tariff structure ranging from 10 to 12.5 per cent has been applied to certain products from the European Union, Taiwan, Japan, South Korea and Switzerland, while other countries covered by the investigation face the full 12.5 per cent duty.