Democratic Attorneys General Challenge Trump's Latest Tariff Expansion

The legal challenge, which follows similar complaints from small businesses, targets the 10% and 12.5% duties imposed on July 24. These measures affect nearly 99% of U.S. imports and were enacted under Section 301 of the Trade Act of 1974. While previous presidents have utilized this statute to address specific economic grievances, the states argue that the current administration is using the claim of forced labor as a pretext to re-impose broad tariffs already struck down by the judiciary. Oregon Attorney General Dan Rayfield described the policy as an attempt to inflict unnecessary chaos on working families and local businesses.

This litigation arrives after the U.S. Supreme Court ruled on February 20 that the International Emergency Economic Powers Act does not grant the president unilateral authority to impose such duties. Despite that setback and subsequent rebukes from the Court of International Trade regarding temporary tariffs, the administration has doubled down on its trade strategy. The states contend that the current Section 301 application lacks historical precedent and fails to address actual forced labor concerns, functioning instead as an unlawful broad-brush tax on international commerce.