25 US States Sue American President Over Fresh Tariffs (Img: X)
New Delhi: A coalition of 25 Democratic-led US states has filed a lawsuit challenging President Donald Trump's latest global tariff policy, arguing that the administration exceeded its legal authority by imposing sweeping import duties on dozens of countries, including India.
The legal challenge comes weeks after the White House announced a revised tariff framework aimed at curbing imports linked to forced labour.
The lawsuit has been filed by attorneys general from 25 states, including New York, California, Illinois, Massachusetts, Michigan, Pennsylvania and Washington.
They contend that the administration has once again imposed tariffs without congressional approval, despite an earlier court ruling that questioned the legality of similar measures.
New York Attorney General Letitia James said the administration was attempting to increase costs for American families and businesses through tariffs that had already faced judicial scrutiny.
The latest lawsuit follows an earlier ruling by the US Court of International Trade in New York, where a three-judge bench held that the administration's earlier 10% worldwide tariffs exceeded powers granted to the President by Congress. The court ruled that such broad trade measures required legislative authority.
The new legal action seeks to prevent the implementation of the revised tariff regime announced by the Trump administration.
Under the revised framework, countries with stronger measures against forced-labour imports are subject to a 10% tariff, while nations considered to have weaker safeguards face a higher 12.5% duty.
India secured the lower 10% rate after introducing amendments to its Foreign Trade Policy in June that strengthened restrictions on goods produced through forced or coerced labour. The policy revision, coupled with sustained diplomatic engagement between New Delhi and Washington, led US trade officials to reclassify India before the tariff order was finalised.
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The lower tariff rate is expected to benefit several export-oriented sectors, including textiles, pharmaceuticals, engineering goods and auto components. Compared to the initially proposed 12.5% tariff, the revised 10% duty offers Indian exporters a competitive advantage in the US market.
The development also follows Washington's decision to withdraw a separate 25% penalty tariff linked to India's purchases of Russian oil, signalling a recent easing in trade tensions between the two countries.
The lawsuit is likely to trigger another round of legal scrutiny over the President's authority to impose broad-based tariffs without congressional approval. If the courts again rule against the administration, the implementation of the latest tariff policy could face delays or further revisions.
For India, however, the immediate impact remains positive, with exporters continuing to benefit from the lower tariff bracket unless the policy undergoes another significant legal or administrative change.
