The third battle over tariffs: Democrats have filed a class action lawsuit against Trump's tariffs

Democrats have filed a class action lawsuit against the White House demanding the cancellation of new tariffs that US President Donald Trump is trying to impose. Their chances of winning are high, because the Supreme Court has already canceled previous duties twice. Details can be found in the Izvestia article.

A wake-up call for the White House

"The plaintiff states oppose forced labor in all its forms and support the protection of workers' rights worldwide. However, the administration cannot use the fight against forced labor as an excuse to continue its illegal tariff scheme," the text of the statement of claim says, as cited by The Hill.

25 American states controlled by the Democratic Party have filed a lawsuit against US President Donald Trump in connection with his new import duties, the introduction of which was explained by the fight against forced labor. They called them "as illegal" as those that the Supreme Court had previously declared invalid.

The initiators of the lawsuit were Oregon, Arizona and California, large importers and logistics hubs. The initiative of the states was joined by small businesses, which also filed their own lawsuits. This is an important signal: not only political opponents have united against Trump, but also those who pay duties directly.

Last month, the authorities announced the introduction of new tariffs against 60 countries, including China, Japan and the EU, which provide for an additional surcharge of 10% to 12.5% on imported goods, which means an increase in the cost of hundreds of thousands of items — from electronics to agricultural products.

Unlike the first two rounds, where the duties were targeted, the current ones are global in nature. This is particularly annoying for European capitals, which have already warned of symmetrical retaliatory measures.

In addition, according to the document, duties on products imported from Russia will amount to 12.5%. This shows Washington's ambivalent position: on the one hand, trade with the Russian Federation continues, on the other, it is subject to an increased fee.

Another round

The new tariffs replaced the temporary global rate of 10% introduced by Trump. The American leader introduced these measures in February, after the US Supreme Court overturned the duties imposed last year.

As the newspaper notes, this is another attempt by the president to unilaterally push through his tariff agenda, resorting to the interpretation of existing laws.

This time, he is appealing to section 301 of the Trade Act of 1974, which authorizes the imposition of duties to protect "against unfair trade" that harms the country's commercial interests. The Administration refers to its months-long investigation into cases of forced labor abroad.

Democrats claim that U.S. Trade Representative Jamison Greer does not comply with the procedural rules and other mandatory requirements prescribed by Section 301. The plaintiffs insist that the duties should be canceled, and all security payments made by them should be refunded to the states.

"The duties imposed by the trade representative are so broad in scope that they contradict the stated goals of the department itself and turn into a farce the law they are trying to justify their introduction," the document says.

A dangerous situation for the president

This lawsuit has become another link in a chain of lawsuits initiated by small businesses in response to the latest tariff restrictions announced in recent days. The Democrat-controlled states are trying to challenge in the courts all three rounds of tariffs that Trump has been trying to impose since his return to the White House.

During the first, the Supreme Court ruled by a majority vote that the head of the United States does not have the right to use emergency powers to impose such large-scale fees. After that, the president imposed duties on the basis of temporary powers, which the lower court also declared illegal.

Then Trump decided to change tactics and appeal to section 301, which has traditionally been used for targeted rather than global measures. Now the Supreme Court, where the conservatives have a majority (six judges against three), will have to evaluate the new initiative of the head of the White House. At the same time, key judges, including Trump's own appointees, had previously rejected his arguments.

The plaintiffs claim that the administration failed to establish a link between "unfair practices" and specific damage to the American economy, and used the fight against forced labor only as an excuse. If the court agrees with this argument, the administration of the American leader risks getting a third injunction in a row.

Between the trial and the election

According to analysts, the new duties may add up to 0.5–0.7 percentage points to inflation in the United States, which is especially painful against the background of the high cost of loans. If the court does not stop the tariffs, the Federal Reserve may be forced to maintain tight monetary policy for longer than planned.

For Trump, tariff policy is not just an economic tool, but a powerful campaign slogan to protect American manufacturers. However, judicial defeats undermine this image and show its vulnerability to the institutions of power.

Democrats accuse the administration of "not respecting the principle of separation of powers" by acting "outside the legal framework." The signing of the lawsuit by 25 states is almost half of the country, which turns the case from legal to political.

If the Supreme Court rejects Trump's initiative again, he will have to do one of two things: either come up with a fourth legal way to impose duties or try to get the law passed through Congress, but this is unlikely to work now, or admit that his tariff policy simply does not fit into American laws. Any of these options would be a serious blow to the Republican campaign.

At the broken trough

Trump's room for maneuver is steadily shrinking, American political scientist Malek Dudakov believes.

"Now the White House's trade policy is finally being finished off. As well as the Trump team's negotiating position on the outer circuit. After all, who in their right mind would run to make deals if they could wait for the tariffs to be lifted in American courts. In the meantime, stall for time and feed Trump with promises," the expert notes in his Telegram channel.

He also draws attention to the fact that the Senate went on a summer vacation, "leaving the White House in a broken trough."

"Trump's electoral reform, the SAVE Act, which restricts postal voting, has not been adopted. Not even $88 billion has been allocated to continue the war with Iran. Lawmakers were able to avoid the fall shutdown, but only by refusing to provide anything to Trump," the expert explains.

At the same time, the analyst emphasizes that the ratings of the US president are falling.

"Although he tries to pretend like he doesn't care. The unfavorable situation in the economy is affecting. Trump has to shout at the oil giants on social media and demand lower fuel prices. But no one is in a hurry to obey him. The strategic oil reserves of the United States are already on the verge of depletion," the expert draws attention.

Dudakov also recalls that in June, an investigation was opened against American oil companies for overstating the cost of fuel.

"Since that moment, the business has not moved forward, prices have even increased. And there's not much time before the elections. Trump's position is weakening, and this is being exploited by all his opponents inside and outside the United States, who almost simultaneously launched an offensive against the White House," concludes the Americanist.