25 states sue to stop Trump administration’s latest tariffs

More than two dozen states are challenging the Trump administration’s most recent round of widespread tariffs. 

Big picture view:

Twenty-five states filed a lawsuit on Monday calling the latest import duties from the White House a pretext for replacing ones struck down by the Supreme Court early this year. In February, the justices ruled that the foundation for many of the tariffs previously imposed by the Trump administration did not authorize such taxes.

What they're saying:

"After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs," said New York Attorney General Letitia James.

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The backstory:

The Trump administration announced the tariffs late last month under an authority granted to the president to impose taxes and sanctions to fight unfair trade practices. The White House accused the affected countries, which make 99% of the goods the U.S. imports, of not doing enough to curb forced labor.

What they're saying:

 "A foreign country’s failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens U.S. commerce, including American workers, and must be addressed," White House spokesman Kush Desai said. "Section 301 tariffs have proven to be a legally durable tool since the President’s first term, and they remain so now."

By the numbers:

The tariffs will range from 10% to 12.5% and apply to 60 trading partners, the White House explained. Those nations account for 99% of U.S. imports. Canada, the European Union, Mexico, and Taiwan are among the countries facing 10% tariffs, while China, Japan, South Korea, and multiple other nations are being hit with the higher 12.5% tariff.

Dig deeper:

The states’ lawsuit is not the first one faced by the Trump administration over the newly revealed tariffs. Within days of the White House’s July 23 announcement, two cases were filed by small businesses over the hikes. 

Both of those lawsuits made similar arguments. First, they contend, the tariffs do not target a specific economy. Additionally, according to the plaintiffs, the White House did not explain how the tariffs would help curb forced labor in the targeted countries, the stated reason for the tariffs.

PoliticsEconomy