New Lawsuit Challenges Trump's Latest Global Tariff Regime

Dow Jones
07/25

The legal group that successfully fought President Trump's first wave of tariffs, which were struck down by the Supreme Court in February, is challenging his latest levies.

Liberty Justice Center filed a lawsuit Friday in the Court of International Trade arguing Trump's newly announced 10% to 12.5% tariffs, targeting the U.S.'s major trading partners, are an unlawful attempt to restore the president's global tariff policy.

Trump is imposing the duties under Section 301 of the Trade Act of 1974 to combat forced labor. The lawsuit says the statute doesn't give a U.S. trade representative authority to impose sweeping tariffs on dozens of countries without a specific finding that each failed to impose or effectively enforce a ban on importing goods made with forced labor.

Liberty Justice Center is representing two small businesses-Collective Horology, a California watch retailer and distributor, and Burlap & Barrel. The New York-based spice retailer was one of two companies that challenged the now-expired temporary tariffs Trump imposed under Section 122 of the trade law after he lost at the Supreme Court.

While Liberty Justice Center has successfully challenged Trump's prior tariffs, experts have said the new levies imposed under Section 301 could be more legally defensible.

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