We have to look at the whole counsel of God's Word. Being justified by His grace includes being justified by the vehicle of faith, too.
Romans 3:25 says we are justified by grace, but this would also include being justified by faith without the deeds of the Law (i.e. the Law of Moses), - Romans 3:28.
James says we are justified by works and not by faith alone (James 2:24).
For James says he will show his faith by his works (James 2:18).
James is clearly talking about a different kind of work than the works Paul is talking about. James is talking about the works of Sanctification via the Spirit working in us. Paul is talking about external works of man that a person tries to do to save themselves that does not include God's grace. Romans 3:1 asks the questions: "What advantage then hath the Jew? or what profit
is there of circumcision?" Circumcision is something of the Old Law and not the New Law. This is what Paul was fighting against. Circumcision Salvationism. He is saying we are initially and ultimately saved by God's grace through faith and not of Works Alone Salvationism via the heresy of Circumcision Salvationism that was being pushed during that time period. Galatians 5:2 says if you seek to be circumcised, Christ will profit you nothing.
The heresy of Circumcision Salvationism (and going back to the Old Law) is clearly described to us in the following verses at the Jerusalem Council. For...
Acts of the Apostles 15:1 says,
"And certain men which came down from Judaea taught the brethren, and said, Except ye be circumcised after the manner of Moses, ye cannot be saved."
Acts of the Apostles 15:5 says,
"But there rose up certain of the sect of the Pharisees which believed, saying, That it was needful to circumcise them, and to command them to keep the law of Moses."
Acts of the Apostles 15:24 says,
"Forasmuch as we have heard, that certain which went out from us have troubled you with words, subverting your souls, saying, Ye must be circumcised, and keep the law: to whom we gave no such commandment"
Paul was not referring to the commands of Jesus Christ (Which were new teachings).
For Paul says if any man does not agree with the words of Jesus Christ and the doctrine according to godliness, he is proud and he knows nothing (1 Timothy 6:3-4). James says God resists the proud and gives grace to the humble (James 4:6).