Kumar Bahukhandi
President Donald Trump addresses supporters during a public event in Michigan. His administration’s latest tariff policy affecting 60 countries, including India, has now been challenged in court by a coalition of 25 Democratic-led US states. (Photo: AFP)
Democratic-led states call import duties unlawful, warn of higher costs for American families and businesses
Washington, August 4: A fresh legal battle has erupted in the United States after a coalition of 25 Democratic-led states challenged President Donald Trump’s latest tariff policy, arguing that the new import duties imposed on 60 countries—including India—are unconstitutional and economically damaging.
The lawsuit, filed before the US Court of International Trade, seeks to block the recently announced tariff regime, claiming the administration exceeded its legal authority while introducing the measures.
The disputed tariffs, announced last month, range between 10 and 12.5 percent and apply to countries that the US administration says have not taken adequate steps to prevent the use of forced labour in supply chains. Together, the affected economies account for nearly all American imports.
India Receives Lower Tariff Rate
India has been subjected to a 10 percent tariff, lower than the previously proposed 12.5 percent. The reduction reportedly followed New Delhi’s decision to amend its foreign trade policy by prohibiting imports of goods produced through forced labour, a move seen as addressing one of Washington’s key concerns.
States Question Legal Authority
Leading the challenge, New York Attorney General Letitia James, supported by Governor Kathy Hochul and attorneys general from 24 other states, argued that the administration is attempting to impose broad-based tariffs without following procedures laid down under US trade laws.
According to the petition, the administration has relied on provisions of the Trade Act of 1974, but the states contend that the law does not permit such sweeping action without meeting mandatory legal requirements, including proper investigation and public consultation.
Consumers Could Bear the Cost
The coalition argues that the additional duties will eventually be passed on to American consumers through higher prices on imported goods, while businesses dependent on global supply chains could face increased operating costs.
State officials maintain that tariffs effectively function as taxes on imports, with the financial burden ultimately reaching households and manufacturers rather than foreign exporters.
Questions Raised Over Forced Labour Justification
The legal filing also challenges the administration’s justification that the tariffs are aimed at combating forced labour. According to the plaintiffs, the investigation cited only a limited number of products linked to forced labour while extending tariffs across dozens of countries and thousands of unrelated goods.
The lawsuit further alleges that the Office of the United States Trade Representative did not adequately consider objections and evidence submitted during the consultation process before finalising the tariff schedule.
Trade Policy Faces Fresh Judicial Scrutiny
The case is expected to become another significant test of presidential authority over international trade policy. A ruling against the administration could affect the implementation of the tariff programme and influence future executive actions involving import restrictions.
For India, the legal challenge comes at a time when bilateral trade discussions with the United States continue, and any judicial decision altering the tariff framework may have implications for exporters and ongoing commercial negotiations.
