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Small Businesses Challenge Trump Tariffs in New York Court
The plaintiffs say the administration used forced-labor findings to impose duties on goods from 60 trading partners, covering 99.4% of U.S. imports.
On Wednesday, spice importer Burlap & Barrel and watch importer Collective Horology will argue in the Court of International Trade in New York City that the Trump administration did not properly establish forced labor cases before levying duties.
The Liberty Justice Center represents these plaintiffs after securing a February Supreme Court victory against the president's previous International Emergency Economic Powers Act tariffs. CEO Sara Albrecht describes the new forced labor duties as "blatantly pretextual."
New tariffs cover 99.4% of U.S. imports at rates of 10% or 12.5%. Trade expert Wolff called the forced labor investigation a "fake, bogus test" for 60 countries, designed solely to impose duties.
While U.S. Customs and Border Protection processes roughly $166 billion in IEEPA refunds, businesses continue paying the new tariffs. Plaintiffs allege these levies harm their bottom lines, forcing them to loan working capital to the government.
The Department of Justice declined to comment Monday on the ongoing litigation. Liberty Justice Center attorneys argue the administration exceeded tariff authority delegated by Congress under the Trade Act of 1974.