Donald Trump’s New Tariffs Spark Uproar In The US, 25 States File Lawsuit Over ‘Illegal Taxes’

Washington: A major legal dispute has arisen in the country regarding the new customs duty (tariff) implemented by US President Donald Trump. 25 states of America have approached the court against the Trump administration. The states allege that the government has imposed new tariffs ignoring the earlier decision of the Supreme Court, which are beyond the scope of law.

Why did a new tariff dispute erupt?

States say the Trump administration imposed new tariffs at a time when previously imposed temporary tariffs were set to expire. They allege that the government is imposing new taxes bypassing the legal process.

What allegations have the states made against the government?

New York Attorney General Letitia James, who is leading the case, said that despite a setback at the Supreme Court, the administration is trying to impose an illegal economic burden on ordinary families and businesses through the new tariffs.

Why has the Trump government been surrounded before?

The Trump administration has claimed that imposing higher import duties will boost American manufacturing and prevent the import of foreign goods made with forced labour. For this purpose, the government had earlier also imposed heavy duty on imports from many countries.

However, in February this year, the Supreme Court had ruled that the government does not have the right to impose such tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. After the court's decision, the government had to return the tax collected.

Now under which law has the new tariff been imposed?

After the temporary duty period ended, the Trump administration used Section 301 of the Trade Act of 1974 to impose a new tariff ranging from 10 to 12.5 percent. This provision allows the president to impose tariffs on countries accused of unfair trade practices.

It is being said that this decision will affect those countries from which America imports about 99 percent of its total imports.

What explanation did the White House give?

The White House has defended the Trump government's decision. The administration says it is in the interests of American industries and workers to prevent goods made from forced labour. The government claims that the new tariff imposed under Section 301 of the Trade Act is completely legal and fair.