25 states sue Trump over forced-labor tariffs, calling them illegal workaround

A coalition of 25 states filed suit Monday against the Trump administration over its latest round of import tariffs, arguing the levies are an unconstitutional attempt to resurrect duties the Supreme Court struck down earlier this year. The states allege the White House used forced-labor concerns as a pretext to impose double-digit tariffs on 59 countries and the European Union, timed precisely to when the court-blocked tariffs expired.

The new duties, enacted under Section 301 of the Trade Act of 1974, carry rates of 10% to 12.5% on goods from 60 economies. New York Attorney General Letitia James called them an illegal tax on families and businesses. California Attorney General Rob Bonta framed the suit as the third court challenge to the administration's tariff agenda.

For businesses and investors, the case adds another layer of legal uncertainty to an already volatile trade environment. If courts again block the tariffs, companies that have restructured supply chains or repriced products in response will face fresh dislocation. Watch for a preliminary injunction request and how quickly the case moves through the courts, as the timeline could determine whether the tariffs remain in place through year-end.

Twenty-five states sued the Trump administration Monday, arguing its latest round of tariffs — 10% to 12.5% on goods from 60 economies, imposed under Section 301 of the Trade Act of 1974 — amounts to an illegal substitute for import taxes the Supreme Court struck down in February. The new tariffs took effect just as the temporary measures Trump had relied on after that court defeat expired, a timing the states say is no coincidence. New York led the coalition, which spans both coasts and the Midwest. The White House defended the levies, arguing that trading partners have failed to crack down on forced-labor imports, which it called an unreasonable burden on U.S. commerce. The suit is the third legal challenge to Trump's tariff agenda and represents the broadest state-level mobilization yet against his trade policy.

A 25-state coalition filed suit Monday against the Trump administration's latest tariffs — rates of 10% to 12.5% on goods from 60 trading partners — alleging the White House exceeded its authority under Section 301 of the Trade Act of 1974. California Attorney General Rob Bonta called it the third court challenge to the administration's tariff agenda. The White House defended the levies, saying foreign nations' failure to ban forced-labor imports burdens U.S. commerce. The outcome will shape how much legal runway the administration retains for its broader tariff strategy.

President Trump publicly called on ExxonMobil and Chevron to reduce gas prices after both companies posted sharp profit gains fueled by energy market disruption from the U.S.-Iran conflict. ExxonMobil reported second-quarter profit of $14.5 billion, double its year-ago result, while Chevron posted its highest-ever quarterly profit of $12.2 billion, a fivefold increase. Trump said the companies would give some of those gains back to the public, though he offered no policy mechanism to compel the cuts.

ExxonMobil and Chevron together reported more than $26 billion in profit for the second quarter, driven by the energy market upheaval stemming from the U.S.-Iran conflict. Chevron's $12.2 billion quarter was its highest ever; ExxonMobil's $14.5 billion result doubled its year-ago figure. The windfall extended globally: Shell nearly doubled net profit to $10 billion, and Saudi Aramco's net profit rose 44% to $32.69 billion. President Trump responded by publicly chastising the companies for making too much money and claiming they would return some gains to the public, though he specified no concrete mechanism.

The Federal Communications Commission is drafting a rule that would bar imports of new Chinese optical transceivers — components that move data across fiber-optic cables inside data centers — according to four people familiar with the matter who spoke with Reuters. Officials aim to publish the measure this year. The move targets concerns about data theft, malware, and service disruption at facilities that house AI training infrastructure. The restriction could still be modified or dropped, but it signals the administration's intent to limit Chinese hardware in critical U.S. digital infrastructure.

The U.S. State Department has notified Congress of plans to close five foreign missions: consulates in Nagoya, Japan; Medan, Indonesia; Winnipeg, Canada; St. George's, Grenada; and Douala, Cameroon. The closures represent a rare, unprompted shrinkage of America's global diplomatic presence not tied to a specific geopolitical event. For multinationals and investors, a reduced consular network can slow visa processing, complicate trade facilitation, and signal diminished U.S. engagement in affected markets.

A May 13 internal email from CFPB Chief Examiner Fatima Batie warned mid-level supervision staff they would face "most unpleasant" consequences if they were too aggressive in overseeing financial firms, according to the email and two people familiar with the matter reviewed by Reuters. The warning arrived as the bureau was resuming firm inspections after a lengthy hiatus, and comes amid a broader administration push to cut CFPB examinations by roughly 50%. Critics say the message effectively pressures examiners to go easy on companies they oversee. For banks and consumer lenders, the signal is clear: the enforcement environment has shifted materially, reducing compliance risk but also eroding a key backstop for consumers in the credit market.

OpenAI and subsidiary Statsig will pay $3.2 million to settle Justice Department claims that they discriminated against U.S. job applicants by favoring foreign workers on temporary employment visas. Alleged tactics included requiring U.S. applicants to mail paper applications, advertising openings on late-night radio, and omitting positions from external job boards. OpenAI denied wrongdoing in the settlement. The case is the highest-profile in a string of at least a dozen similar DOJ settlements, reinforcing that tech-sector hiring practices face heightened scrutiny under the current administration.

Democratic Sens. Elizabeth Warren and Richard Blumenthal wrote to SEC Chair Paul Atkins Monday requesting an investigation into the $TRUMP memecoin, which hit a market value of roughly $9 billion on Jan. 19, 2025, before collapsing. Trump Organization affiliates held 80% of the coin's supply. Trump reported nearly $636 million in royalty and licensing fees tied to related Celebration Coins in 2025. The coin now trades below $400 million, leaving investors who bought near the peak with steep losses. The senators characterized the scheme as potential illegal fraud or unjust enrichment.

The American Bar Association's policy-making body voted Tuesday against eliminating the organization's longstanding diversity, equity, and inclusion requirement for law school accreditation, setting up a potential confrontation with the Trump administration. The ABA's accreditation council retains authority over the final decision and is set to discuss the matter later this month. Failure to repeal the rule could put the ABA's status as the federally recognized law school accreditor at risk, with downstream consequences for admissions standards and institutional funding across legal education.

A federal judge set a March 2, 2027 trial date for antitrust challenges to Paramount's planned acquisition of Warner Bros. Discovery, dealing a setback to Paramount, which had sought a November trial in hopes of closing the deal this summer. Judge Araceli Martinez-Olguin scheduled 12 court days for the proceeding. The extended timeline leaves both companies in regulatory limbo and delays any potential cost savings or strategic repositioning the combined entity could achieve.

The Michigan Supreme Court reversed two prior rulings that had narrowed the state's 1976 Consumer Protection Act, clearing the way for the attorney general to pursue an investigation into Eli Lilly's insulin pricing. The decision, stemming from subpoenas issued in a 2022 probe, has implications beyond drug pricing: it broadens the legal tools available to Michigan regulators across industries. Gov. Gretchen Whitmer called it a landmark victory for consumers. Michigan has an estimated 1.08 million residents with diabetes.

The Senate Judiciary Committee approved Todd Blanche's nomination as attorney general Tuesday on a strict party-line vote of 12-10, advancing President Trump's pick to the full Senate. The vote came after Blanche reached a written agreement with Sens. John Cornyn and Thom Tillis — both retiring in January — confirming the end of the Justice Department's controversial anti-weaponization fund, which would have compensated people who believed they were unfairly prosecuted. Democrats called the written order a sham, arguing the fund could be revived. Blanche can lose no more than two Republican votes on the Senate floor; Sens. Lisa Murkowski, Bill Cassidy, and Susan Collins have not committed to backing him, leaving his confirmation uncertain.

Republican Sens. John Cornyn and Thom Tillis announced they will support Todd Blanche's attorney general nomination after he issued a written order confirming the termination of the Justice Department's anti-weaponization fund. The two senators had blocked committee action for days demanding official confirmation beyond Blanche's verbal assurances. Both are leaving the Senate in January. The deal clears the committee but Blanche still faces a narrow path on the Senate floor, where several GOP moderates remain uncommitted.

Senate Republicans included a provision in the stopgap funding bill that would delay an Office of Management and Budget proposal to place political appointees in charge of hundreds of billions of dollars in federal grants. The proposed rule drew nearly 500,000 public comments, 95% of them negative. If enacted, it would allow grants to be terminated without cause and convert uniform guidance into binding regulations. The spending bill only extends through Dec. 11, leaving the rule's fate unresolved beyond that date.

A Defense Department estimate provided to Congress puts the cost of extending the National Guard deployment in Washington through January 2029 at roughly $1.4 billion for fiscal years 2027 through 2029, assuming an average of 2,500 troops. The deployment, launched under a presidential emergency order last summer, has drawn criticism from local officials and Democrats who argue it militarizes the capital at taxpayer expense. At its peak this summer, troop numbers reached approximately 5,000.

An appellate court rejected the Education Department's request for an 18-month extension to review fraud claims from borrowers who attended predatory for-profit schools, ordering $11 billion in debt canceled for more than 170,000 additional borrowers. The ruling pushes the total class-action settlement to nearly 500,000 borrowers and roughly $23 billion in debt forgiven, making it the largest class-action settlement in U.S. history. The Trump administration's bid to delay review was blocked first by a district judge and then unanimously by a three-judge Ninth Circuit panel.

The House Ethics Committee recommended Monday that Rep. Chuck Edwards, R-N.C., be censured for persistent unprofessional and inappropriate conduct toward two young female aides. The committee cited lavish and recurring gifts, comments about their appearance and dress, invitations to intimate dinners and vacations, and notes expressing affection. Edwards denied any sexual or romantic intent, but the committee said his behavior would lead a reasonable observer to interpret it as such. A censure represents formal House disapproval short of expulsion.