Key facts
- Two U.S. businesses have sued the Trump administration over new Section 301 tariffs.
- The tariffs were imposed due to forced labor concerns.
- The lawsuit was filed by the Liberty Justice Center on behalf of Burlap & Barrel and Collective Horology.
- Plaintiffs allege the USTR acted arbitrarily and capriciously by imposing uniform tariffs across 60 economies without sufficient explanation.
- The tariffs reportedly cover lawful imports with no demonstrated connection to forced labor.
Two small U.S. businesses have filed a lawsuit against the Trump administration's recent tariffs, which were imposed on dozens of trading partners over concerns about forced labor. The Liberty Justice Center initiated the legal action in the U.S. Court of International Trade on behalf of Burlap & Barrel, an online retailer, and Collective Horology, a retailer and distributor.
The tariffs, which took effect Friday, carry a maximum rate of 12.5 percent and were announced after the U.S. Trade Representative (USTR) investigated 60 economies under Section 301 of the 1974 Trade Act. The administration replaced a 10 percent global tariff that expired on the same day.
The complaint argues that the USTR acted "arbitrarily and capriciously" by applying similar tariffs across diverse economies without providing a reasoned explanation for how they would address forced labor practices. The plaintiffs also contend that the USTR failed to demonstrate how taxing these products would compel foreign governments to alter their import policies.
According to the litigation firm, the new duties affect lawful imports that have no clear link to forced labor, including goods imported by American small businesses with transparent and responsible supply chains. Sara Albrecht, chairman and CEO of the Liberty Justice Center, stated that while forced labor is morally indefensible, an important objective does not permit the government to disregard the law.