Small businesses are suing the Trump administration over new Section 301 tariffs


Small businesses are suing the Trump administration over newly enacted tariffs under Section 301 of the Trade Act.

These challenges aim to impose customs duties of 10 percent or 12.5 percent on goods from more than 60 countries. Reports Axios.

The tariffs came into force after temporary Section 122 measures ended last week and are intended to address concerns about forced labor in supply chains.

One complaint, filed by the Liberty Justice Center on behalf of spice importer Burlap & Barrel and watch retailer Collective Horology, alleges that officials set prices in advance and then make justifications for certain economies.

Another suit involves toy maker Learning Resources, which previously prevailed in a Supreme Court case that struck down tariffs under emergency powers, along with the flooring company and related entities.

Prosecutors say the administration used broad findings rather than proving how individual countries’ practices hurt U.S. trade as required by law.

Asher Rabkin, co-founder of Collective Horology, noted that previous tariffs have already cost the company more than $160,000 with no refunds.

The company imports watches from Switzerland and lacks viable local alternatives for many products.

Courts rejected an earlier attempt at tariffs under emergency powers, and litigation over the Section 122 round continues on appeal.

The White House offered no comment on the new orders, although officials previously defended the measures as responses to unfair trade practices.

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