Two U.S. small businesses have filed a lawsuit challenging the Trump administration's latest round of tariffs, implemented on goods from 60 trading partners. The businesses argue that the new tariffs, which took effect Friday, exceed the president's authority to tax imports, a claim they have also made against previous tariff actions by the administration.
The lawsuit, filed in the U.S. trade court in New York, contends that the tariffs require more specific country-by-country findings regarding forced labor to be legally justified. The plaintiffs, supported by a nonprofit legal group, assert that the administration is attempting to reinstate tariffs previously deemed illegal by the U.S. Supreme Court.
The Trump administration imposed new tariffs of 10% and 12.5% on Friday, citing allegations that trading partners were not sufficiently preventing the export of goods produced with forced labor. These tariffs were introduced as a temporary 10% global tariff expired.
Tariffs have been a central element of President Trump's foreign policy strategy, utilized as leverage in negotiating international trade deals. However, the Supreme Court ruled on Feb. 20 that the International Emergency Economic Powers Act (IEEPA) does not grant the president the authority to unilaterally impose tariffs. In response, Trump initiated a temporary global tariff under different legal authority, which was also challenged in trade court and ruled illegal. The administration is appealing that ruling.
The tariffs implemented on Friday were enacted under Section 301 of the Trade Act of 1974, a provision intended to address unfair or discriminatory economic practices by other nations. While Section 301 has been used by previous presidents, the plaintiffs argue that its historical application has been to target specific nations and industries, and that the current broad approach lacks precedent.