Small businesses filed two lawsuits in the U.S. Court of International Trade on July 25, 2016, challenging new global import tariffs [1], [2].
The legal action targets the administration's use of trade authority to impose broad duties. If the courts rule against the government, it could limit the president's ability to unilaterally alter trade costs for thousands of American companies.
The disputed measures impose duties ranging from 10% to 12.5% [3] on goods arriving from more than 60 countries [1]. The administration implemented these tariffs under Section 301 of the Trade Act of 1974 [4].
According to the filings, the lawsuits were submitted within hours of the tariffs taking effect [2]. The plaintiffs said that the administration unlawfully revived trade measures that the Supreme Court had previously struck down [1], [2].
The legal challenge centers on whether the current administration exceeded its presidential authority under the 1974 act [4]. Small-business groups said that the breadth and application of these duties violate established legal precedents regarding trade enforcement.
The cases are currently before the U.S. Court of International Trade in New York [1], [2]. The court will determine if the 10% to 12.5% [3] duties are lawful or if they constitute an overreach of executive power.
“Lawsuits challenge new import duties on goods from more than 60 countries.”
This legal battle tests the boundaries of executive power under the Trade Act of 1974. By challenging the use of Section 301, small businesses are attempting to create a judicial check on the administration's ability to use tariffs as a primary tool of foreign policy and economic leverage.
