More than two dozen US states have filed a lawsuit seeking to invalidate President Donald Trump’s tariffs on imports from 60 trading partners, including Canada.
The coalition argues that the administration exceeded its statutory authority by imposing the levies under forced labour concerns rather than national security or trade remedy grounds.
The legal action targets the recent imposition of tariffs of up to 12.5% on goods from the affected countries.
These measures replaced temporary levies that were set to expire, following a Supreme Court ruling that had previously constrained the administration's ability to maintain the earlier duties indefinitely.
The new tariffs were justified by the White House as necessary to combat forced labour practices abroad.
For markets, the lawsuit introduces a layer of regulatory uncertainty into an already volatile trade environment.