States Argue Section 301 Duties Violate Trade Law, Demand Refunds

A group of twenty‑five U.S. states has taken the Trump administration to court, alleging that the recent Section 301 tariff increases breach federal trade statutes. The complaint, lodged in the U.S. Court of International Trade, claims that President Trump’s decision to levy an extra 10‑12.5 percent duty on a broad swath of imported goods exceeds the authority granted by the Trade Act of 1974.

The filing points out that the affected nations together account for 99.4 percent of all U.S. imports, meaning the tariffs touch almost every consumer purchase. The states are asking the court to block the duties, declare them unlawful, and order a full refund of the tariffs already paid by importers.

New York Governor Kathy Hochul described the tariffs as a backdoor tax that inflates prices for essential items, from groceries to building materials. Attorneys general from Oregon, Arizona and other states echoed the criticism, stressing that the burden falls disproportionately on families and small businesses.

The White House rebutted the challenge, insisting that Section 301 remains a legitimate and durable tool for protecting American interests, and that the current administration has upheld its use in line with established precedent.