US small businesses challenge Trump’s new ‘forced labor’ tariffs
Summary
Two small U.S. businesses have filed a lawsuit against President Donald Trump’s new tariffs on imports from 60 countries. They argue the tariffs, meant to punish forced labor, exceed the president’s legal authority because they lack detailed country-specific evidence.Key Facts
- The lawsuit was filed in a U.S. trade court in New York by two small businesses with support from a nonprofit legal group.
- The new tariffs are 10 percent and 12.5 percent on goods from 60 trading partners, including the European Union.
- These tariffs target countries alleged to not do enough to stop goods made with forced labor.
- The lawsuit claims the tariffs require more specific findings about forced labor for legal approval.
- The businesses say these tariffs are similar to previous tariffs President Trump imposed that the U.S. Supreme Court ruled illegal.
- The Supreme Court ruled in February that the International Emergency Economic Powers Act (IEEPA) does not give the president authority to impose tariffs alone.
- President Trump responded by imposing a temporary global tariff under a different law, but that was also ruled illegal by the U.S. trade court.
- The new tariffs are imposed under Section 301 of the Trade Act of 1974, a law used before to fight unfair trade, but critics say Trump’s broad use is without precedent.
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