25 States Sue Trump Over New Tariffs on 60 Partners 2026

25 US states sue Trump administration over new tariffs on 60 trading partners, sparking a major legal battle over presidential trade authority. The coalition, led by New York Attorney General Letitia James, filed a lawsuit on Monday with the US Court of International Trade, seeking to halt the tariffs, declare them unlawful, and order refunds of duties already paid. This action comes after the Supreme Court struck down previous tariffs in February, and the new levies, ranging from 10% to 12.5%, took effect in July under Section 301 of the Trade Act of 1974.

Why the States Are Challenging the Tariffs

The lawsuit argues that the Trump administration is using forced labor concerns as a pretext to impose sweeping tariffs without congressional approval. The states contend that the president lacks constitutional authority to unilaterally raise taxes on imports from 59 countries plus the European Union, which collectively account for 99.4% of US imports. “After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses,” James said in a statement.

The new tariffs affect major trading partners including the UK, Australia, Canada, Japan, Taiwan, and China. The administration officials have justified the tariffs by claiming these countries have not done enough to crack down on imports produced by forced labor. However, the states argue that Section 301 was never intended to serve as a blanket tariff authority, and that the administration is bypassing the rule of law.

Key States and Legal Arguments

In addition to New York, the states joining the action are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Virginia, Vermont, Washington, and Wisconsin, along with the governors of Kentucky and Pennsylvania. The lawsuit follows a separate suit filed by the Liberty Justice Center on behalf of two US small businesses.

The legal challenge centers on the separation of powers. The states argue that the president’s use of Section 301 to impose tariffs on a wide range of countries violates the Constitution’s Taxing and Spending Clause, which grants Congress the power to levy taxes. They are asking the court to issue a preliminary injunction to stop the tariffs immediately, as well as a declaratory judgment that the tariffs are unlawful.

Impact on Businesses and Consumers

Tariffs on imports from 60 partners will raise costs for US businesses that rely on foreign goods, from electronics to apparel. These costs are often passed on to consumers in the form of higher prices, which could fuel inflation. Small businesses, in particular, are vulnerable, as they lack the resources to absorb tariff hikes or relocate supply chains quickly.

The table below compares the new tariffs with the previous “Liberation Day” tariffs that were struck down:

Key Takeaways for Business Owners

• Monitor legal developments: The court ruling could change tariff obligations retroactively.
• Review supply chains: Identify exposure to affected countries and consider diversification.
• Prepare for refunds: If the lawsuit succeeds, businesses may be entitled to refunds on duties paid.
• Consult trade counsel: Legal experts can help navigate compliance and potential mitigation strategies.

What Happens Next?

The US Court of International Trade will hear arguments on the states’ request for an injunction. Legal experts suggest the case could reach the Supreme Court again, given the constitutional questions involved. Meanwhile, the tariffs remain in effect, creating uncertainty for importers and exporters.

The administration has defended the tariffs as necessary to combat forced labor, but critics argue that the policy harms American businesses and undermines global trade rules. The outcome of this lawsuit will have far-reaching implications for presidential power over trade policy.

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