2 U.S. businesses sue Trump gov't over new Section 301 tariffs

Lead

Two small U.S. businesses have filed a lawsuit against the Trump administration seeking to block new tariffs imposed on imports from dozens of trading partners, including Australia. The legal challenge, filed Friday in the U.S. Court of International Trade, was brought by non-profit law firm Liberty Justice Center on behalf of Burlap & Barrel, a New York-based online spice retailer, and Collective Horology, a California-based watch seller. The tariffs, announced the previous day by President Donald Trump's administration over forced labor concerns, took effect Friday.

Coverage Comparison

ABC Australia reported that the new tariffs include a 12.5 percent levy on Australian imports, saying the administration imposed the duties after conducting trade investigations into all the U.S.'s major trading partners. The broadcaster noted that the businesses' case has been taken up by the Liberty Justice Center, which previously challenged Trump's "liberation day" tariffs.

Yonhap News Agency, reporting from Washington, described the lawsuit as challenging tariffs on dozens of trading partners, with the U.S. Trade Representative (USTR) having conducted investigations into 60 economies under Section 301 of the 1974 Trade Act. Yonhap also noted that the duties took effect as the administration's 150-day 10 percent global tariff lapsed on the same day.

Both outlets reported that the lawsuit alleges the USTR acted "arbitrarily and capriciously" by imposing near-uniform tariffs across 60 materially different economies. However, ABC Australia emphasized the potential impact on Australia and quoted Australian government officials, while Yonhap provided additional details about the legal arguments and included a defense of the tariffs from President Trump.

Key Claims

• Two small U.S. businesses filed a lawsuit against new tariffs on dozens of U.S. trading partners, as reported by both ABC Australia and Yonhap.
• The tariffs were announced by the Trump administration over forced labor concerns, per Yonhap.
• The USTR conducted investigations into 60 economies under Section 301 of the 1974 Trade Act, according to Yonhap.
• The duties took effect Friday as the administration's 150-day 10 percent global tariff lapsed, as reported by Yonhap.
• The complaint alleges the USTR acted "arbitrarily and capriciously" by imposing near-uniform tariffs across 60 materially different economies, as stated in the lawsuit and reported by Yonhap.
• The new tariffs include a 12.5 percent levy on Australian imports, per ABC Australia.
• Experts are split on whether the tariffs will survive a legal challenge, a claim carried by ABC Australia. The outlet quoted former U.S. trade negotiator Wendy Cutler, who said the likelihood of courts overriding these tariffs is significantly lower than previous actions, and also referenced Alan Wolff, a senior figure, without completing his quote in the material.
• The Australian government will argue "very forcefully" against the "unjustified" new tariffs, as reported by ABC Australia.
• Trump defended his tariff policy, underscoring that it has helped attract investments, as reported by Yonhap.

Perspectives

Liberty Justice Center (plaintiffs' counsel): The non-profit law firm argues that the tariffs are unlawful. Sara Albrecht, chairman and CEO of the Liberty Justice Center, said: "Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law." The firm also noted that Trump officials publicly stated they would find ways to bring back tariffs after the first wave was struck down in court, and that some statements were made before the USTR completed or even began the investigations.

Trump administration: President Donald Trump defended his tariff policy, underscoring that it has helped attract investments, as reported by Yonhap. The administration imposed the tariffs based on USTR investigations that found trading partners were doing too little to combat forced labor, according to ABC Australia.

Australian government: ABC Australia reported that the Australian government will argue "very forcefully" against the "unjustified" new tariffs, indicating opposition to the 12.5 percent levy on Australian imports.