Small Businesses Sue Trump Over Sweeping Import Tariffs

Several small businesses filed two lawsuits in the Court of International Trade on Friday to challenge sweeping new tariffs implemented by the Donald Trump administration. The levies apply to 60 trading partners and cover 99% of U.S. imports, with first-phase tariffs set at 10% and 12.5%. The administration utilized Section 301 of the Trade Act of 1974, justifying the measures by citing the failure of these nations to prevent imports produced by forced labor.

These actions follow a February Supreme Court of the United States ruling that struck down previous emergency-based worldwide tariffs and the recent expiration of temporary 10% levies. The administration is also launching investigations into 16 key trading partners, including China, Japan, and the European Union, to probe industrial subsidies and intellectual property violations in sectors like robotics and semiconductors.

The lawsuits were filed by Learning Resources Ltd. and other small firms, as well as Burlap and Barrel and Collective Horology. The latter two are represented by the Liberty Justice Center. Plaintiffs argue the government failed to establish specific cases against each economy or explain how the tariffs would eliminate forced labor. Sara Albrecht of the Liberty Justice Center claimed the administration is replacing expired tariffs with new ones under a different statute to ignore the law.