US states sue Trump administration over new tariffs on 60 trading partners
📰 source: theguardian_business · 💼 business
twenty-five us states sued the trump administration on monday over new tariffs of 10% to 12.5% on goods from 60 trading partners, asking the us court of international trade to halt them and refund duties already paid. the states call the tariffs a pretext for replacing import taxes the supreme court struck down in february. according to the coalition, tariffs imposed last month on 59 countries and the eu cover 99.4% of us imports.
new york attorney general letitia james said the administration is 'again trying to illegally raise taxes on families and businesses' after losing in court. the new tariffs took effect in july, after 'liberation day' tariffs were ruled unconstitutional and a temporary set expired. they rely on section 301 of the trade act of 1974, which targets forced labor, and hit major partners including the uk, australia, canada, japan, taiwan and china.
white house spokesman kush desai defended the tariffs as lawful, saying section 301 has been 'legally durable.' new york governor kathy hochul called them 'a tax on hardworking families.' a separate suit from the liberty justice center also challenges the tariffs on behalf of two small businesses.
why it matters: states challenge tariffs covering 99.4% of imports, raising odds of legal roadblock that could hit global trade and prices.
source: theguardian_business
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