Overview
- Twenty-five states filed a federal lawsuit Monday asking a court to block the surtaxes and to declare the administration’s procedure unlawful.
- The tariffs took effect on July 24 and impose 10 percent or 12.5 percent surtaxes that the administration says target roughly 60 countries and cover nearly 99 percent of U.S. imports.
- The White House justified the measures by using a 1974 trade statute after an expedited 150-day investigation and said the goal was to pressure trading partners to eliminate forced labor from supply chains.
- State plaintiffs argue the probe was a pretext to reinstate tariffs courts struck down earlier this year and say the rule lacks any clear mechanism for removing duties if a country fixes the cited problems.
- If courts leave the tariffs in place U.S. families and businesses could face higher prices, and the case will force judges to decide how far the executive can use the 1974 law to set trade policy.