donald trumpGermany’s tariff strategy is once again under legal scrutiny.Just as temporary 10% tariffs were set to expire globally, two groups of small businesses went to court to challenge the administration’s latest trade measures. The lawsuits point to sweeping tariffs announced earlier this week, which impose double-digit levies on goods from 60 trading partners and cover 99% of U.S. imports.The Trump administration has invoked Section 301 of the Trade Act of 1974, saying the tariffs are aimed at countries that have failed to prevent imports produced by forced labor. Opponents, however, argue that the new measures are effectively replacing the global tariffs Trump imposed last year, which were struck down by the Supreme Court in February.
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Two lawsuits question the legality of the new rates
The first lawsuit was filed Friday with the International Trade Court by educational toy company Learning Resources and several other small businesses. Learning Resources was also among the plaintiffs in the previous tariff case that was ultimately successful in the Supreme Court.The second lawsuit was filed by Burlap and Barrel, a New York-based spice company, and Collective Horology, a Ventura, California-based watch retailer. The companies are represented by the Liberty Justice Center, a libertarian advocacy group.Both lawsuits argue that the government failed to adequately present its case against each individual economy. They also maintain that the administration did not explain how the tariffs would eliminate the specific practice they are intended to address, as required by Section 301.
Companies say the administration is skirting the law
The lawsuits argue that while the administration has justified the tariffs as a response to forced labor, the measures are being used to replace global tariffs that were eliminated earlier this year.“Forced labor is morally indefensible, but an important goal does not give the government permission to ignore the law,” said Sara Albrecht, president and CEO of the Liberty Justice Center. “The administration allowed a blanket tariff to expire and immediately replaced it with another under a different statute. Changing the statute does not change the law.”The White House did not immediately respond to a request for comment.
Experts expect tariffs to remain in place
Legal experts believe the latest lawsuits could face a greater challenge than previous ones.Trump had relied on Section 301 during his first term to impose sweeping tariffs on China, and those measures survived court challenges. Experts say history could make it more difficult to successfully challenge the latest tariffs.Patrick Childress, a partner at Holland & Knight and a former U.S. trade official, said the current tariffs are likely to remain in place for an extended period.Unlike the Section 122 taxes that expired Friday, “these tariffs will be with us for the long haul,” he said.Childress added that even if countries adopt the exact policies sought by the United States, they would still have to demonstrate to Washington’s satisfaction that those measures are being implemented before tariffs can be lifted.“This suggests there will be no near-term path to nationwide relief from the new Section 301 tariffs.”