Trump’s administration is facing a fresh legal battle after a coalition of 25 states filed a lawsuit challenging his latest round of tariffs, calling them unlawful and economically damaging for American families. The lawsuit was filed on Monday, in the U.S. Court of International Trade, marking the third time state attorneys general have taken Trump’s tariff policy to court this year. The case matters because it could determine whether Trump can keep using trade law to impose duties that courts have already blocked once before.
Why are states suing Trump over tariffs again?
The states argue Trump’s new tariffs are simply a workaround. In February 2026, the Supreme Court ruled that the International Emergency Economic Powers Act did not give Trump authority to impose sweeping global tariffs. That decision forced refunds to importers. Rather than dropping tariffs, Trump moved to Section 301 of the Trade Act of 1974, a law meant to punish unfair trade practices. States say this new justification does not hold up.
According to the lawsuit, Trump’s Section 301 tariffs are not really about forced labour. States argue they exist to recreate duties the courts already struck down.
What do the new Trump tariffs include?
On July 23, 2026, Trump announced tariffs of 10 to 12.5 percent on more than 80 trading partners. The stated reason was that these countries had not done enough to stop imports made with forced labour.
- Tariffs took effect July 24, 2026, the same day Trump’s earlier temporary duties expired
- Rates range between 10 percent and 12.5 percent
- Affected countries account for a large share of total US imports
- The order relies on Section 301 rather than emergency powers law
Trade lawyers note that Section 301 typically requires a lengthy investigation, something the states claim was rushed in this case.
How has Trump’s tariff policy evolved since 2025?
Trump’s approach to tariffs has shifted repeatedly as courts pushed back. Here is the rough timeline:
- April 2025: A dozen states sue over IEEPA-based tariffs
- February 2026: Supreme Court rules Trump’s IEEPA tariffs are illegal
- Early 2026: Trump switches to Section 122, imposing temporary 10 percent duties
- March 2026: States sue again, this time over Section 122
- May 2026: Trade court rules those Section 122 tariffs unlawful, though they remain active pending appeal
- July 24, 2026: Section 122 tariffs expire; new Section 301 tariffs take effect
- August 3, 2026: 25 states file this latest lawsuit
Trump Tariff Legal Battles (2025–2026)
IEEPA lawsuit ████████████████████ (Apr 2025)
Section 122 ██████████████ (Mar 2026)
Section 301 ██████████████████████ (Aug 2026)
Each round shows states escalating their legal pushback as Trump adjusts the legal basis for new duties.
What are States and the White House saying?
California Attorney General Rob Bonta, in a statement issued Monday, August 3, 2026, said Trump was making a “third attempt to illegally impose tariffs.“
New York Attorney General Letitia James, in a statement the same day, said the administration is “once again trying to illegally raise taxes on families and businesses.“
White House spokesman Kush Desai defended the policy in a statement to the press on August 3, 2026, saying the administration is acting within its lawful authority to address unfair foreign trade practices.
What happens next in the Trump tariffs case?
The lawsuit asks the Court of International Trade to declare the tariffs illegal and block their enforcement. States also want refunds for duties already paid. Given the court’s earlier ruling against Section 122 tariffs, legal experts expect a lengthy hearing process. An appeal to the Supreme Court remains possible regardless of the outcome.
For everyday Americans, the case could decide whether prices on imported goods keep rising or whether some of Trump’s tariff-driven cost increases get rolled back. Trump’s tariff strategy keeps landing in court, and this latest challenge from 25 states shows the fight over presidential trade powers is far from over.