U.S. Small Businesses Challenge Legality of Trump's New Tariffs, Sue to Avoid Judicial Ruling

U.S. President Trump announced a new round of comprehensive tariff measures on the 24th, immediately facing legal challenges. Two lawsuits have been filed with the U.S. Court of International Trade in Manhattan, strongly questioning the legality of these double-digit tax measures targeting about 60 trading partners and covering 99% of U.S. imports.

The tariff rates range between 10% and 12.5%, implemented under Section 301 of the 1974 Trade Act. The Trump administration claims these measures are justified because the relevant economies have failed to effectively enforce bans on importing products made with forced labor. However, the small businesses filing the lawsuits—including educational toy company Learning Resources, New York spice importer Burlap and Barrel, and California watch retailer Collective Horology—argue that the government has not established sufficient evidence against individual economies nor explained how the tariffs will specifically eliminate forced labor practices.

The plaintiff's legal representative, the 'Liberty Justice Center,' criticized the government for swiftly replacing legal provisions to re-erect tariff barriers after the Supreme Court previously ruled earlier global tariffs invalid. Center CEO Sara Albrecht emphasized that while combating forced labor is morally unassailable, a worthy goal does not justify bypassing legal procedures. She accused the government of merely renaming and reviving previously invalidated measures.

Experts warn that this round of legal challenges may be more difficult than previous ones. Lawyer Patrick Childress pointed out that Section 301 tariffs are typically long-term; even if countries adopt policies demanded by the U.S., tariffs will only be lifted after proving their effectiveness meets Washington's satisfaction. This means businesses are unlikely to receive relief in the short term.

Additionally, the Trump administration plans to impose a 50% tariff on Canadian goods starting August 19, raising concerns of further escalation in trade disputes.