Two small American businesses filed suit against the Trump administration on Thursday, challenging new tariffs imposed on goods from more than 80 countries under Section 301 of the Trade Act of 1974. The lawsuit, filed in the U.S. Court of International Trade, seeks to halt enforcement of the 10% to 12.5% levies that took effect earlier in the day.
The Liberty Justice Center filed the complaint on behalf of Burlap & Barrel, a New York spice importer, and Collective Horology, a California watchmaker. The legal group won a Supreme Court case earlier in 2026 that struck down Trump's previous tariff regime. The plaintiffs argue the administration is using Section 301 as a pretext to revive tariffs previously invalidated under the International Emergency Economic Powers Act.
The U.S. Trade Representative's office determined that 60 economies failed to prohibit imports made with forced labor, triggering the new duties. The tariffs apply to trade partners representing 99.4% of U.S. commerce, though certain foods, fuels, automobiles, and metals are exempt.