ET 09:00

US Trade Court Reviews Trump "Forced Labor" Tariffs in Abuse-of-Power Suit

IMP5.5
SNT+0.1▲
CONF80%
Regulatory

The US Court of International Trade (CIT) held a hearing Wednesday on a lawsuit challenging President Trump's "forced labor" tariffs, imposed in July under Section 301 of the Trade Act of 1974 on 60 trading partners. Four small businesses and 25 Democrat-led states argue the duties on EU and Chinese goods exceed presidential authority. The tariffs, ranging from 10% to 12.5%, cover as much as 99.4% of US imports. Plaintiffs — including spice importer Burlap & Barrel and watch importer Collective Horology — allege the administration bypassed congressional authorization and imposed blanket duties without substantive country-by-country investigations. A three-judge panel appointed by Presidents Trump, Barack Obama and Joe Biden heard the case. A written ruling is expected after the hearing rather than from the bench. Liberty Justice Center CEO Sara Albrecht called the tariffs a pretext to replace expired temporary duties. Former US trade official and WTO Deputy Director-General Alan Wm. Wolff, who helped draft Section 301, filed an amicus brief supporting the plaintiffs, saying the statute was designed for targeted action against a single country, not a test applied to 60 nations.

ByTicklex Editorial