Small Businesses Sue Trump Administration Over Section 301 Tariffs

Small businesses are suing the Trump administration over tariffs enacted under Section 301 of the Trade Act. The lawsuits target duties of 10 percent or 12.5 percent on goods from more than 60 countries that took effect after temporary Section 122 measures lapsed last week. Plaintiffs claim officials set tariff rates in advance and later crafted justifications for specific economies, violating statutory requirements to prove how individual nations' practices harm U.S. commerce. The tariffs aim to address concerns over forced labor in supply chains.

Liberty Justice Center Files Complaint on Behalf of Importers

The Liberty Justice Center brought one complaint on behalf of spice importer Burlap & Barrel and watch retailer Collective Horology. The complaint claims officials set rates in advance and later crafted justifications for specific economies. Plaintiffs argue the administration used broad findings instead of proving how individual nations' practices harm U.S. commerce as required by statute.

Collective Horology Reports Over $160,000 in Prior Tariff Costs

Collective Horology co-founder Asher Rapkin noted that prior tariffs already cost the firm over $160,000 with refunds still pending. The company imports watches from Switzerland and lacks viable domestic alternatives for many products.

Learning Resources Joins Suit After Supreme Court Victory

Another suit involves toymaker Learning Resources, which previously prevailed in a Supreme Court case striking down tariffs under emergency powers, along with a flooring company and related entities. Courts rejected an earlier tariff attempt under emergency authorities, and litigation over the Section 122 round continues on appeal. The White House offered no comment on the new filings, though officials previously defended the measures as responses to unfair trade practices.

FAQ

What tariff rates are small businesses challenging in the lawsuits? The lawsuits challenge tariffs of 10 percent or 12.5 percent on goods from more than 60 countries enacted under Section 301 of the Trade Act.

How much did Collective Horology pay in prior tariffs? Collective Horology co-founder Asher Rapkin stated that prior tariffs already cost the firm over $160,000 with refunds still pending.