Twenty-Five States Sue Trump Administration Over New Section 301 Tariffs
Twenty-five states sued the Trump administration on Monday, August 3, 2026, in the U.S. Court of International Trade, challenging new Section 301 tariffs as unlawful.[1]
The tariffs apply at roughly 10% to 12.5% to about 60 economies, described by reporting as 59 countries plus the European Union.[1] Reporters say the levies were timed to take effect when the administration's temporary 10% worldwide tariffs expired at midnight July 24, 2026, and the White House defended the move as lawful under Section 301.[2]
In February 2026 the Supreme Court struck down the administration's global tariffs imposed under the International Emergency Economic Powers Act.[2] After that ruling the government imposed a brief 10% worldwide tariff and then replaced it last month with Section 301 "forced-labor" duties.[2] Two small-business lawsuits filed in July in the Court of International Trade also challenge the Section 301 tariffs' statutory findings.[2]
The states' complaint says the Section 301 levies were meant to replace the tariffs the Supreme Court overturned in February, not to primarily address forced labor.[1] California Attorney General Rob Bonta called the tariffs President Trump's "third attempt" to illegally impose such levies and said they raise costs for families and small businesses.[1] Fitch Ratings data cited in reporting show the effective U.S. tariff rate fell to 7.4% from 9.4% after the administration replaced temporary duties with the Section 301 tariffs.[1]
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📌 Key Facts
- A lawsuit by 25 states was filed Monday, August 3, 2026, in the U.S. Court of International Trade challenging the administration's new tariffs (U.S. Court of International Trade).
- The administration’s Section 301 tariffs cover roughly 60 economies — described as “59 countries plus the European Union” in reporting — with rates generally ranging from 10% to 12.5% and targeting goods alleged to be produced with forced labor (59 countries plus the European Union).
- Reporters say the Section 301 tariffs were timed to take effect as the administration’s temporary 10% worldwide tariffs expired at midnight July 24, 2026, and follow the earlier sequence of measures including IEEPA-based global tariffs struck down by the Supreme Court in February 2026 and a subsequent temporary tariff round (Section 301 tariffs).
- The states’ complaint argues the Section 301 levies are intended to replace the tariffs the Supreme Court struck down in February 2026 rather than primarily to remedy forced labor, according to the filing (the complaint).
- California Attorney General Rob Bonta called the tariffs President Trump’s “third attempt” to illegally impose such levies and said they act as taxes that raise costs for American families and small businesses (California Attorney General Rob Bonta).
- White House spokesman Kush Desai defended the move as a lawful use of Section 301 to counter foreign governments that fail to curb imports produced with forced labor (Kush Desai).
- Two separate lawsuits by small businesses were filed in July 2026 in the Court of International Trade, alleging the Section 301 tariffs rest on inadequate statutory findings (two separate lawsuits).
- Fitch Ratings data cited in reporting say the effective U.S. tariff rate fell to 7.4% from 9.4% after the administration replaced temporary Section 122 duties with the new Section 301 tariffs (Fitch Ratings).
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Article specifies that the lawsuit was filed Monday, August 3, 2026, in the U.S. Court of International Trade.
- It reports the tariffs target about 60 economies with rates ranging from 10% to 12.5%, versus prior reporting of 59 plus the EU and 10%-12.5%.
- The complaint explicitly argues the Section 301 tariffs are intended to replace levies the Supreme Court struck down in February 2026, not to address forced labor.
- The article quotes California Attorney General Rob Bonta calling the tariffs President Trump's "third attempt" to illegally impose such levies and framing them as taxes that raise costs for American families and small businesses.
- White House spokesman Kush Desai is quoted defending the tariffs as a lawful use of Section 301 to address foreign governments' failure to curb imports produced with forced labor.
- Fitch Ratings data cited in the piece say the effective U.S. tariff rate has fallen to 7.4% from 9.4% after the administration replaced temporary Section 122 duties with the new Section 301 tariffs.
- Article clarifies that the Section 301 tariffs, imposed "last month" before Aug. 3, 2026, were timed to take effect as Trump's temporary 10% worldwide tariffs expired at midnight July 24, 2026.
- It reiterates that the Section 301 tariffs apply at 10%-12.5% to 59 countries plus the European Union, targeting economies accused of failing to crack down on imports produced with forced labor and covering countries that provide 99% of U.S. imports.
- The piece details the sequence of authorities used: first IEEPA-based global tariffs struck down by the Supreme Court in February 2026 and refunded; then temporary 10% worldwide tariffs; then the new Section 301 'forced-labor' tariffs as a more durable authority.
- It quotes White House spokesman Kush Desai defending the tariffs as a lawful use of Section 301 to counter countries that fail to effectively prohibit imports made with forced labor.
- It notes that, prior to the states' case, two separate lawsuits were filed in the Court of International Trade in July 2026 by small businesses challenging the same Section 301 tariffs for allegedly inadequate findings under the statute.