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•  Legal Exams - Legal News


Twenty-five states sued the Trump administration Monday over its latest tariffs, calling them a pretext for replacing import taxes the Supreme Court struck down in February.

The United States last month imposed double-digit tariffs on 59 countries and the European Union, charging that they had not done enough to crack down on imports produced by forced labor. The new tariffs took effect just as the clock ran out on temporary tariffs President Donald Trump had turned to after the Supreme Court defeat.

“After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs,” said New York Attorney General Letitia James.

Joining New York in the lawsuit announced Monday are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Virginia, Vermont, Washington and Wisconsin.

Trump, who argues that high tariffs will revive American manufacturing, last year overturned decades of U.S. policy that favored lower tariffs and ever-freer trade. Invoking the 1977 International Emergency Economic Powers Act, or IEEPA, he imposed double-digit tariffs on imports from almost every country, saying America’s longstanding trade deficit amounted to a national emergency.

But the Supreme Court ruled that IEEPA did not authorize tariffs. The decision forced the administration to send refunds to importers who’d paid the tariffs. Eager to make up the lost revenue, Trump turned to temporary 10% worldwide tariffs. But they expired at midnight July 24.

Now he’s tapping more durable tariffs under Section 301 of the Trade Act of 1974, which permits the president to impose import taxes and other sanctions against countries found to engage in unfair trade practices. Trump used Section 301 to impose big tariffs on China in his first term, and they survived court challenges.




Two lawsuits filed by small businesses are challenging Trump’s sweeping tariffs announced Thursday that impose double-digit levies on 60 trading partners.

The tariffs, implemented under Section 301 of the Trade Act of 1974 for what the Trump administration says is countries’ failure to prevent imports produced by forced labor, cover 99% of U.S. imports. Critics say the goal is less to prevent forced-labor imports and more to replace the worldwide tariffs that Trump imposed last year that were struck down by the Supreme Court in February. They came just as temporary 10% worldwide tariffs — that had also been challenged in court — expired.

Educational toy company Learning Resources, which was part of the tariff lawsuit that won in the Supreme Court, filed a new suit along with several other small businesses in the Court of International Trade on Friday over the current round of tariffs.

The second lawsuit was filed by Burlap and Barrel, a New York-based spice company, and Collective Horology, a watch retailer based in Ventura, California. They are represented by Liberty Justice Center, a libertarian advocacy group.

Both lawsuits argue that the government didn’t adequately establish its case against each specific economy or spell how the tariffs will eliminate the specified practice they are being levied for, as required by Section 301.

“Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law,” said Sara Albrecht, chairman and CEO of the Liberty Justice Center. “The administration allowed one global tariff to expire and immediately replaced it with another under a different statute. Changing the statute doesn’t change the law.”

The White House did not immediately respond to a request for comment.

Experts say it might be tougher to successfully challenge the current round of tariffs than previous rounds. Trump used Section 301 to impose big tariffs on China in his first term, and they survived court challenges.

Unlike the Section 122 levies that expired Friday, “these tariffs will be with us for the long haul,” said lawyer Patrick Childress, a partner at Holland & Knight and a former U.S. trade official.

Even if countries enact the precise policies the U.S. wants, he said, they will still need to prove that they’re enforcing them to Washington’s satisfaction before the tariffs are removed. “This suggests that no short-term path for country-wide relief from the new Section 301 tariffs will be available.”




A federal judge said the government overreached by issuing a declaration that called treatments like puberty blockers and surgeries unsafe and ineffective for young people experiencing gender dysphoria, according to a ruling Thursday in Oregon.

Judge Mustafa Kasubhai's ruling was centered on Secretary Robert F. Kennedy Jr. not going through the proper administrative procedures when issuing the declaration in December.

The declaration also warned doctors that they could be excluded from federal health programs like Medicare and Medicaid if they provide these treatments.

The judge also denied the defendants' motion to dismiss the case.

The judge's ruling was at the end of a roughly 6-hour hearing and will be followed by a written decision.

"Today's win breaks through the noise and gives some needed clarity to patients, families, and providers," the Democratic New York Attorney General Letitia James, who led the lawsuit, said in a statement Thursday. "Health care services for transgender young people remain legal, and the federal government cannot intimidate or punish the providers who offer them."

A spokesperson for HHS did not immediately respond to an email requesting comment. The New York Times reported that the judge spoke about the broader implications associated with this case, especially as it relates to democracy.

"The notion that 'I will go forward and issue a declaration and see if we can get away with it' is not a principle of governance that adheres to the overarching commitment to a democratic republic that requires the rule of law to be regarded and respected and honored as a sacred," the judge said.

The decision is the second major legal setback for Kennedy and the U.S. Department of Health and Human Services this week. Another federal judge in Boston on Monday temporarily blocked several of Kennedy's vaccine policy changes. The judge ruled Kennedy likely violated federal procedures in revamping a key vaccine advisory committee and slimming down the childhood vaccine schedule without the committee's input. Federal officials have indicated they plan to appeal that ruling.

A coalition of 19 states and the District of Columbia in December sued HHS, Kennedy and its inspector general over the declaration, alleging that it is inaccurate and unlawful and asking the court to block its enforcement.

The lawsuit says that HHS's declaration seeks to coerce providers to stop providing gender-affirming care and circumvent legal requirements for policy changes. It also says federal law requires the public to be given notice and an opportunity to comment before substantively changing health policy — neither of which, the suit says, was done before the declaration was issued.

HHS's declaration based its conclusions on a peer-reviewed report that the department conducted earlier this year that urged greater reliance on behavioral therapy rather than broad gender-affirming care for youths with gender dysphoria.

The report questioned standards for the treatment of transgender youth issued by the World Professional Association for Transgender Health and raised concerns that adolescents may be too young to give consent to life-changing treatments that could result in future infertility.

Major medical groups and those who treat transgender young people have sharply criticized the report as inaccurate, and most major U.S. medical organizations, including the American Medical Association, continue to oppose restrictions on transgender care and services for young people.




The Justice Department is taking direct aim at the financial lifelines of Mexico’s most violent drug cartels, targeting money brokers who prosecutors say have adapted to intensified enforcement by increasingly routing drug profits through cryptocurrency from American cities to cartel leaders in Mexico.

The cases of four defendants recently sent from Mexico to the U.S. for prosecution provide a glimpse into shadowy money laundering networks that allow the Jalisco New Generation Cartel and other violent groups to continue pumping dangerous drugs into American communities. The prosecutions underscore the Justice Department’s efforts to turn up the pressure on cartels and stay ahead of their sophisticated and ever-evolving tactics to launder money across the border without detection.

By targeting alleged money brokers — rather than street-level traffickers — prosecutors say they are aiming at a choke point they believe is essential to the cartels sustaining their operations as law enforcement pressure mounts on more visible drug routes.

Since the beginning of President Donald Trump’s second administration, the Mexican government has turned over more than 90 high-level defendants with ties to cartels in three transfers now at the center of a legal debate in Mexico. The defendants were wanted by U.S. prosecutors for crimes including drug trafficking, human smuggling and money laundering.

Senior Justice Department officials say bringing cartel figures to the United States is designed to do more than be a deterrent message. It could also lead to indictments against other high-level leaders if defendants cooperate, allowing prosecutors to reach higher into cartel leadership. Under Trump’s Republican administration, the Justice Department has restructured the Criminal Division to integrate narcotics prosecutors with anti-money laundering experts to better target cartels and to reflect a broader shift toward targeting the financial systems that sustain their operations.

The latest transfers to the U.S. include alleged Mexico-based money brokers, who authorities say oversee the movement of drug proceeds and pocket a percentage of the money that returns to the cartels as a commission, according to court papers. The brokers arrange for cash to be picked up in cities across the U.S. and conceal the money to get it across the border, often through digital assets as law enforcement has cut off other methods.

Prosecutors “want to hear on the distribution side how it works, who is involved, and seek additional indictments, and on the money laundering side, exactly the methods that they are using to get the money out of the United States through the U.S. banks,” Duva said. “There’s bulk cash smuggling that has been going on since the beginning of time, and then also sort of the newer trend of taking the cash, buying cryptocurrency, and then trading that cryptocurrency.”

Eduardo Rigoberto Velasco Calderon, Eliomar Segura Torres, Manuel Ignacio Correa and Cesar Linares-Orozco face money laundering conspiracy charges in indictments filed in Kentucky’s federal court. An attorney for Linares-Orozco declined to comment in an email to the AP, and no attorneys were listed in court papers for the other defendants.

The January transfer of 37 defendants from Mexico to the U.S. marked the third of its kind under Trump’s second term. Observers have described the transfers as an offering by Mexican authorities to offset mounting threats by Trump to take military action against cartels.

A group of lawyers and family members of cartel figures have accused Mexico of breaking the law by sending them without an extradition order. Mexico’s government has maintained the transfers were legal, carried out in the name of national security.



Amazon is slashing about 16,000 corporate jobs in the second round of mass layoffs for the ecommerce company in three months.

The tech giant has said it plans to use generative artificial intelligence to replace corporate workers. It has also been reducing a workforce that swelled during the pandemic.

Beth Galetti, a senior vice president at Amazon, said in a blog post Wednesday that the company has been “reducing layers, increasing ownership, and removing bureaucracy.”

The company did not say what business units would be impacted, or where the job cuts would occur.

The latest reductions follow a round of job cuts in October, when Amazon said it was laying off 14,000 workers. While some Amazon units completed those “organizational changes” in October, others did not finish until now, Galetti said.

She said U.S.-based staff would be given 90 days to look for a new role internally. Those who are unsuccessful or don’t want a new job will be offered severance pay, outplacement services and health insurance benefits, she said.

“While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Galetti said.

CEO Andy Jassy, who has aggressively cut costs since succeeding founder Jeff Bezos in 2021, said in June that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years.

The layoffs announced Wednesday are Amazon’s biggest since 2023, when the company cut 27,000 jobs.

Meanwhile, Amazon and other Big Tech and retail companies have cut thousands of jobs to bring spending back in line following the COVID-19 pandemic. Amazon’s workforce doubled as millions stayed home and boosted online spending.

The job cuts have not arrived with a company on shaky financial ground.

In its most recent quarter, Amazon’s profits jumped nearly 40% to about $21 billion and revenue soared to more than $180 billion.

Late last year after layoffs, Jassy said job cuts weren’t driven by company finances or AI.

“It’s culture,” he said in October. “And if you grow as fast as we did for several years, the size of businesses, the number of people, the number of locations, the types of businesses you’re in, you end up with a lot more people than what you had before, and you end up with a lot more layers.”

Hiring has stagnated in the U.S. and in December, the country added a meager 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November.

Labor data points to a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump’s shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs.

While economists have described the labor situation in the U.S as a “no hire-no fire” environment, some companies have said they are cutting back on jobs, even this week.

On Tuesday, UPS said it planned to cut up to 30,000 operational jobs through attrition and buyouts this year as the package delivery company reduces the number of shipments from what was its largest customer, Amazon.

That followed 34,000 job cuts in October at UPS and the closing of daily operations at 93 leased and owned buildings during the first nine months of last year.

Also on Tuesday, Pinterest said it plans to lay off under 15% of its workforce, as part of broader restructuring that arrives as the image-sharing platform pivots more of its money to artificial intelligence.

Shares of Amazon Inc., based in Seattle, rose slightly before the opening bell Wednesday.



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