Trump sued over new tariffs, experts say courts may scrap them
Key Points:
- The Trump administration imposed broad tariffs on goods from over 80 countries under Section 301 of the Trade Act of 1974, targeting alleged forced labor practices and covering 99.4% of U.S. trade, but these tariffs have already faced a legal challenge.
- Critics argue that Trump is misusing Section 301 to impose permanent, sweeping tariffs similar to those struck down by the Supreme Court under the International Emergency Economic Powers Act (IEEPA), which was ruled unauthorized for such broad tariff actions.
- A lawsuit filed hours after the tariffs took effect claims the new duties are a disguised attempt to reinstate the invalidated global tariff regime, contending that Section 301 does not authorize taxing nearly all imports to replicate prior unauthorized tariffs.
- Trade experts and legal scholars largely believe the new tariffs could be struck down, noting a lack of clear linkage between the tariffs and the stated goal of addressing forced labor, though some acknowledge the government's legal procedures under Section 301 provide significant flexibility.
- The Trump administration maintains the tariffs are focused on combating forced labor and insists the timing is to avoid complexity, while businesses are advised to plan for the tariffs to remain in place given the legal uncertainties and potential delays in court rulings.