Washington: Twenty-five Democratic-ruled states in the US have launched a campaign against President Donald Trump’s tariff policy. These states have filed a lawsuit against the Trump administration in the US Court of International Trade.
Regarding the lawsuit on Monday, US time, New York Attorney General Letitia James stated that the Trump administration is illegally raising taxes on families and businesses.
Trump argues that higher tariffs will revitalize American manufacturing. He cited the International Emergency Economic Powers Act (IEEPA) of 1977. He imposed tariffs on imports from nearly every country, citing the trade deficit as a national emergency.
According to a report by the American news website Politico, these states allege that the new tariffs are a pretext to reverse import taxes struck down by the Supreme Court in February.
Last month, in July, the US imposed double-digit tariffs on 59 countries and the European Union. These tariffs were imposed for failing to take adequate action against imports produced using forced labor.
The Supreme Court had ruled that the IEEPA does not authorize tariffs. Following this decision, the administration had to refund importers who paid the tariffs.
To compensate for the revenue, Trump subsequently imposed temporary 10 percent global tariffs. These tariffs expired on July 24. Now, Trump is imposing more permanent tariffs under Section 301 of the Trade Act of 1974.
This section allows the president to impose import taxes against countries engaging in unfair trade practices. Trump used Section 301 to impose large tariffs on China during his first term, and they survived court challenges.
The Trump administration’s new tariffs range from 10 percent to 12.5 percent. They affect countries that provide 99 percent of US imports.
White House spokesman Kush Desai said the US was exercising its legitimate authority. He added that not enforcing a ban on imports of goods involving forced labor is unfair and burdens US businesses.
California Attorney General Rob Bonta, announcing the lawsuit, said, “President Trump is so intent on raising the cost of living for Americans that he is willing to break law after law to do so.”
Significantly, Bonta’s state is among the states suing. “Tariffs are taxes, and the American people cannot and should not bear the burden of additional costs resulting from the president’s failed and illegal economic policy,” Bonta said.