25 Democratic-led US states sue Trump over tariffs on India and 59 other nations

A coalition of 25 Democratic-led US states on Monday challenged President Donald Trump’s Section 301 tariffs on 60 countries, including India, arguing before the US Court of International Trade that the levies are illegal and would increase costs for American consumers and businesses.

India is currently subject to a 10% tariff under the Section 301 measures, while a separate US investigation that could result in additional duties remains pending.

Last month, the Trump administration imposed fresh tariffs ranging from 10% to 12.5% on 60 countries, citing their alleged failure to address forced labour in supply chains. The new duties replaced the temporary 10% global tariffs that expired on July 24.

States challenge legality of tariffs

New York Attorney General Letitia James, Governor Kathy Hochul and attorneys general from 24 other Democratic-led states asked the Court of International Trade to strike down the tariffs, arguing that the administration exceeded its legal authority.

“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,” James said.

The lawsuit contends that the administration failed to comply with the procedural requirements of Section 301 of the Trade Act of 1974 and used forced labour as a pretext to reimpose broad tariffs that courts had previously blocked.

India among countries facing 10% duty

India is one of 17 countries currently facing a 10% tariff under the latest measures. The US had initially proposed a higher 12.5% tariff for India but later reduced it after New Delhi amended its foreign trade policy on June 14 to prohibit imports of goods produced using forced labour.

However, another US investigation into India’s trade practices remains ongoing and could result in further tariffs.

States say tariffs are arbitrary

The coalition argues that the tariffs have little connection to their stated objective of combating forced labour and instead function as a broad tax on imports.

According to the lawsuit, the administration identified only three products linked to forced labour while imposing tariffs on dozens of countries. It also claims the tariffs contain product exemptions that undermine the government’s stated rationale.

The suit further alleges that the Office of the US Trade Representative failed to properly consider evidence and public comments submitted during the rule-making process, many of which disputed the effectiveness of the tariffs in addressing forced labour concerns.

California Attorney General Rob Bonta said the President lacked the authority to impose such sweeping trade measures.

“Tariffs are taxes, and the American people cannot and should not shoulder the extra costs that come from the President’s failed and illegal economic policy,” Bonta said.