25 US States Sue Trump Administration Over Latest Tariffs

Twenty-five states, largely Democratic-led, have filed a lawsuit challenging the Trump administration's latest tariffs. The tariffs were seen as a move to replace duties struck down by courts and raise questions about data-sharing with ICE regarding needy families.

A coalition of 25 states, led by New York and mostly under Democratic administrations, sued the Trump administration on August 3 over its latest round of tariffs . The suit targets Section 301 duties of 10% to 12.5% imposed on imports from dozens of trading partners and the European Union, announced July 23 under the stated rationale of cracking down on forced-labor goods .

The states argue the new tariffs unlawfully re-impose duties the courts already struck down. In February, the Supreme Court ruled the International Emergency Economic Powers Act (IEEPA) did not give the president authority for the administration's earlier tariffs, and the administration has since pivoted to Section 301 as its legal basis . This is the third time the coalition has sued over Trump-era tariff policy since April 2025 .

The same week, an overlapping but legally separate coalition also sued to block a policy letting the Department of Homeland Security, including ICE, access personal data on families receiving Temporary Assistance for Needy Families (TANF) benefits, set to take effect August 11. It is a distinct case from the tariffs suit, but the two filings signal a broader wave of state-versus-federal litigation this cycle.

Investors should watch how quickly the case reaches the Court of International Trade and whether the administration attempts a further workaround if Section 301 is also struck down, since renewed tariff uncertainty could weigh on import-dependent sectors and trade-sensitive supply chains.