The lawsuit challenges the legality of recent tariffs, arguing they misuse forced labor allegations to extend trade restrictions.
Twenty-five states filed a lawsuit against the Trump administration, alleging its latest tariffs improperly use forced labor as justification for an illegal trade policy. The states argue the tariffs exceed executive authority and harm their economies without addressing labor issues effectively.
The lawsuit follows a series of trade actions targeting imports from countries accused of forced labor practices. Previous tariffs faced legal challenges but were upheld in federal courts, though critics argued they lacked clear economic or labor benefits.
No immediate market reaction was reported, but the case could escalate trade policy uncertainty if courts intervene.