Two lawsuits filed by small businesses challenge the tariffs Donald Trump announced Thursday. The levies, in the double digits, apply to 60 trading partners under Section 301 of the Trade Act of 1974.
The government argues that it seeks to stop imports linked to forced labor. Critics say the real goal is to replace global tariffs that the Supreme Court struck down in February. The new tariffs arrive just when the temporary 10% tariffs, also contested, expire.
Learning Resources, an educational toy company that already won a case in the Supreme Court, filed a new lawsuit before the International Trade Court. Other small companies join.
A second lawsuit was filed by Burlap and Barrel, a spice company, and Collective Horology, a watch retailer. They are represented by the Liberty Justice Center, a libertarian-oriented group.
Both lawsuits allege that the government failed to justify its actions against each country or explain how the tariffs will eliminate forced labor, as Section 301 requires.
“Forced labor is morally indefensible, but an important goal does not give the government permission to ignore the law,” said Sara Albrecht, president of the Liberty Justice Center. “The government let a global tariff expire and immediately replaced it with another under a different law. Changing the law does not change the right.”
The White House did not respond to requests for comment.
Experts warn that challenging these tariffs will be more difficult than on previous occasions. Trump used Section 301 in his first term against China and the tariffs survived the courts.
No short-term relief
Unlike the Section 122 levies that expired Friday, “these tariffs are going to be with us for a long time,” said Patrick Childress, a lawyer and former U.S. trade official.
Even if countries adopt the policies Washington demands, Childress explained that they will have to demonstrate compliance to the satisfaction of the United States before sanctions are removed. “This suggests that no short-term, country-level relief from the new Section 301 tariffs will be available.”