NEW YORK CITY, NEW YORK — Two small businesses filed the first legal challenge to President Donald Trump’s new tariffs on imports from 60 trading partners, arguing that the administration exceeded its authority under federal trade law.
Burlap & Barrel, a New York spice importer, and California watch distributor Collective Horology filed the case Friday in the U.S. Court of International Trade. Both companies import products from countries facing new duties of 10% or 12.5%.
The administration imposed the tariffs under Section 301 of the Trade Act of 1974, claiming the affected economies inadequately prohibit or enforce restrictions on goods produced through forced labor. The duties replaced a temporary global tariff that expired Friday.
Represented by the Liberty Justice Center, the businesses argue Section 301 authorizes targeted responses to specific unfair trade practices, not a broad tariff program covering most American imports. Their complaint also alleges that the administration failed to satisfy statutory procedures and that its interpretation violates constitutional limits on delegating congressional tariff authority.
The plaintiffs are seeking class-action status that could extend any favorable ruling to nearly all affected importers. The Liberty Justice Center previously helped challenge Trump tariffs imposed through emergency powers and Section 122. The White House and U.S. trade representative had not publicly responded to the new lawsuit.
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