Daijiworld Media Network - Washington

Washington, Aug 4: A coalition of 25 Democratic-led US states has filed a lawsuit in the US Court of International Trade challenging President Donald Trump's latest tariff regime imposed on 60 economies that together account for 99.4 per cent of American imports.

The legal challenge, filed on Monday, seeks to block the Trump administration's decision to levy fresh tariffs ranging from 10 per cent to 12.5 per cent on the 60 countries. The administration has said the tariffs were introduced after these nations failed to adequately address concerns related to forced labour, replacing the 10 per cent global tariffs that expired on July 24.

New York Attorney General Letitia James, Governor Kathy Hochul and attorneys general from the 25 Democratic-led states have urged the Court of International Trade to declare the tariffs illegal, arguing that they will increase costs for consumers and businesses across the United States.

"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 in a statement.

India is among 17 countries facing a 10 per cent tariff under the new regime. The US had earlier proposed a tariff of 12.5 per cent on Indian goods. The lower rate came after India amended its foreign trade policy on June 14 to prohibit imports of goods produced using forced labour.

According to the lawsuit, the Trump administration is using Section 301 of the Trade Act of 1974 as a pretext to impose broad tariffs after previous attempts to introduce similar measures were unsuccessful.

The coalition contends that the administration violated legal requirements under Section 301 by failing to follow the prescribed procedures before imposing the tariffs. It also argues that the new measures lack a clear connection to the stated objective of combating forced labour.

"No matter how the administration tries to justify it, the law and our Constitution are clear that the president does not have the power to impose sweeping tariffs on whatever countries he wants," James said.

California Attorney General Rob Bonta criticised the policy, saying, "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 -- no matter how much the President wants them to."

The lawsuit further alleges that the tariffs were imposed arbitrarily and include product exemptions that undermine the administration's stated goal of tackling forced labour. It notes that the administration's investigation identified only three products linked to forced labour as the basis for imposing tariffs on dozens of countries.

The coalition also alleges that the Office of the United States Trade Representative (USTR) failed to adequately consider testimony from affected countries and public comments submitted during the accelerated consultation process, many of which disputed the administration's claim that the tariffs would effectively address forced labour concerns.