- Two lawsuits have been filed by small businesses challenging Trump's sweeping tariffs, which cover 99% of U.S. imports under the forced labor justification.
- The plaintiffs include Learning Resources, Burlap and Barrel, and Collective Horology, represented by the Liberty Justice Center.
- The lawsuits argue the government failed to establish its case per Section 301. The Liberty Justice Center's chairman stated: "Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law." The White House did not respond.
- Experts note that past Section 301 tariffs on China survived court challenges, making it tougher to challenge the current round.
- Trade lawyer Patrick Childress said that unlike expiring Section 122 levies, these tariffs are for the long haul, with no short-term path for country-wide relief.
Small businesses are pushing back against President Trump's sweeping tariffs with two lawsuits filed in the Court of International Trade. The tariffs, which cover 99% of U.S. imports, are justified by the administration as a response to countries' failure to prevent imports produced by forced labor.12
The lawsuits, filed by Learning Resources and a coalition including Burlap and Barrel and Collective Horology, argue that the government did not adequately establish its case against specific economies or demonstrate how the tariffs would effectively eliminate forced labor practices, as mandated by Section 301.34567
“Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law,” stated Sara Albrecht, chairman and CEO of the Liberty Justice Center, which represents the plaintiffs. The White House has not yet commented on the lawsuits.
Experts suggest that challenging these tariffs may be more difficult than previous rounds, as they are designed to be long-lasting. “These tariffs will be with us for the long haul,” said Patrick Childress, a lawyer and former U.S. trade official. He noted that even if countries comply with U.S. demands, they must prove enforcement to Washington's satisfaction before any relief from the tariffs can be expected.1011
The outcome of these lawsuits could have significant implications for small businesses facing increased costs due to the tariffs.
“The two lawsuits, filed by companies including Learning Resources and Burlap & Barrel, argue the government failed to establish its case under Section 301. Experts note that past Section 301 tariffs on China survived court challenges, making it tougher to succeed this time.”
