US small businesses challenge Trump’s new ‘forced labor’ tariffs

Two American small businesses, supported by a nonprofit legal organization, have initiated court proceedings to contest the Trump administration's latest tariff measures. The challenge was filed Friday in the US trade court in New York and centers on whether the president possesses sufficient legal authority to impose the new duties.

The Trump administration implemented tariffs ranging from 10 to 12.5 percent on goods from 60 trading partners, citing inadequate efforts to prevent exports produced through forced labor. The action took effect as a temporary global tariff expired. The administration justified the tariffs under Section 301 of the Trade Act of 1974, a statute historically used by previous presidents to address unfair trade practices by specific nations and industries.

The plaintiffs argue that Trump's application of Section 301 represents an unprecedented broad-brush approach lacking historical precedent. They contend the tariffs require detailed, country-specific findings regarding forced labor to meet legal standards. This challenge follows a February Supreme Court decision that invalidated most of Trump's earlier tariffs imposed under the International Emergency Economic Powers Act, which the court found did not authorize unilateral tariff authority. The administration subsequently imposed temporary global tariffs under different legal authority, which were also ruled illegal by the trade court, though the administration is appealing that decision.