Kathmandu— A coalition of 25 states filed a lawsuit against the Trump administration on Monday, challenging the legality of sweeping new tariffs imposed under Section 301 of the Trade Act of 1974. The complaint, filed in the U.S. Court of International Trade, seeks to block these tariffs and order refunds for duties already paid.

Legal Challenge Against Tariffs

The coalition argues that President Trump's imposition of tariffs on goods from 60 trading partners exceeds his legal authority. The states claim that the administration is using Section 301 and forced-labor concerns as a pretext to recreate nearly identical global duties that were previously struck down by the Supreme Court in February.

Impact on Consumers and Businesses

New York Governor Kathy Hochul stated, "President Trump's illegal tariffs are nothing more than a tax on hardworking families, driving up the cost of groceries, household essentials, building materials, and countless everyday goods that New Yorkers rely on." Oregon Attorney General Dan Rayfield added, "Today, we're filing our third lawsuit against Trump's illegal tariffs. Once again, the president is raising costs on everyday goods for Oregon families and small businesses, and once again, we're leading a multistate coalition stepping up to stop him."

White House Response

The White House rejected the coalition's arguments, asserting that Section 301 tariffs have proven to be a "legally durable tool" since President Trump's first term and remain so under the current administration. This marks at least the second major legal challenge to the new duties, following a lawsuit by a group of small businesses who argue that Trump cannot leverage new legal authority to circumvent the Supreme Court’s prior invalidation of his overarching tariff agenda.

(With inputs from Xinhua)

Originally published on abcnews.com.np.