Washington, 04 August (H.S.): Twenty-five Democratic-led US states have launched a legal challenge against President Donald Trump’s tariff policy, filing a lawsuit against his administration in the US Court of International Trade. The lawsuit was filed on Monday (US time), with New York Attorney General Letitia James alleging that the Trump administration is unlawfully increasing taxes on American families and businesses.

President Trump has defended the high tariffs, arguing that they will revive American manufacturing. His administration had invoked the International Emergency Economic Powers Act (IEEPA) of 1977, declaring the country’s trade deficit a national emergency and imposing tariffs on imports from almost every country.

According to a report by US news website Politico, the states have alleged that the new tariffs are an attempt to replace import taxes that were struck down by the Supreme Court in February. In July, the United States imposed double-digit tariffs on 59 countries and the European Union, citing concerns over insufficient action against imports produced through forced labour.

The Supreme Court had earlier ruled that the IEEPA does not authorise the imposition of tariffs. Following the decision, the administration was required to refund money to importers who had paid those tariffs.

After the ruling, President Trump introduced temporary 10 per cent global tariffs to compensate for the lost revenue. The temporary measure expired on July 24. The administration is now moving towards more permanent tariffs under Section 301 of the Trade Act of 1974, which allows the President to impose import duties against countries involved in unfair trade practices.

During his first term, Trump had used Section 301 to impose significant tariffs on Chinese imports, and those measures survived legal challenges.

The new tariffs introduced by the Trump administration range between 10 per cent and 12.5 per cent and affect countries responsible for nearly 99 per cent of US imports. White House spokesperson Kush Desai said the United States was exercising its legitimate authority. He added that failing to take action against imports linked to forced labour unfairly burdens American businesses.

Announcing the lawsuit, California Attorney General Rob Bonta said President Trump was so determined to raise the cost of living for Americans that he was willing to repeatedly violate laws to achieve that goal.

California is among the 25 states that have joined the legal challenge. Bonta further said that tariffs are taxes and American citizens should not have to bear additional costs resulting from what he described as the President’s failed and unlawful economic policies.

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Hindusthan Samachar / Jun Sarkar