25 Democratic-led states challenge Trump's tariffs on 60 countries including India
PTC News Desk: A group of 25 Democratic-led US states has challenged President Donald Trump's Section 301 tariffs on 60 countries, including India, by filing a lawsuit in the US Court of International Trade.
India is currently facing a 10 per cent tariff under the Section 301 measures, while another US investigation that could result in additional tariffs is still ongoing.
Last month, the US imposed new tariffs ranging from 10 per cent to 12.5 per cent on 60 countries, saying they had failed to take enough action against forced labour. These tariffs replaced the earlier 10 per cent global tariffs that expired on July 24.
The coalition of states, led by New York Attorney General Letitia James and Governor Kathy Hochul, argues that the tariffs are illegal and will increase costs for American consumers and businesses. They have asked the court to strike down the measures.
James accused the Trump administration of trying to impose taxes through tariffs after losing a legal battle in the Supreme Court.
India among countries facing 10% tariff
India is one of 17 countries facing a 10 per cent tariff. The US had earlier proposed a higher 12.5 per cent tariff on Indian imports.
The lower tariff was introduced after India amended its Foreign Trade Policy on June 14 to ban imports of goods made using forced labour.
The Trump administration says the tariffs are aimed at tackling forced labour under Section 301 of the Trade Act of 1974. However, the lawsuit claims this is only an excuse to bring back broad tariffs that the administration had previously failed to implement.
States question legality of tariffs
The lawsuit argues that the administration did not follow the legal process required under Section 301 before imposing the tariffs. It also says the government failed to prove that the tariffs were directly linked to its goal of fighting forced labour.
According to the complaint, the tariffs appear to have been imposed arbitrarily, and the product-specific exemptions weaken the administration's justification.
The lawsuit also points out that the investigation identified only three products allegedly linked to forced labour, yet tariffs were imposed on goods from dozens of countries.
"No matter how the administration tries to justify it, the law and the Constitution do not give the president unlimited power to impose sweeping tariffs on countries," Letitia James said.
- With inputs from agencies
