US Imposes 10%-12.5% Tariffs on About 60 Economies; Two Importers Sue to Challenge Legality

President Trump's latest round of global tariffs took effect on July 24, imposed under Section 301 of the Trade Act of 1974. The rates range from 10% to 12.5% and apply to about 60 economies that the United States has determined have failed to ban and effectively enforce import prohibitions on products made with forced labor. The affected trading partners cover nearly all of U. S. imports.

Section 301 of the Trade Act authorizes the Office of the United States Trade Representative, under the direction of the president, to take retaliatory action against foreign trade measures deemed discriminatory against U. companies or in violation of U. international trade rights. Previous administrations have typically used this provision to impose trade sanctions on specific countries or trade blocs.

New York spice importer Burlap & Barrel Inc. and California watch importer Collective Horology LLC have filed a lawsuit at the U. Court of International Trade in Manhattan. The two companies accuse Trump and U. officials of unlawfully using Section 301 to effectively replace tariff measures that had previously been overturned by the courts or had expired.

Trump's first round of global tariffs was previously struck down by the U. Supreme Court, which ruled that the emergency law cited by Trump did not grant him broad authority to impose tariffs. A subsequent round of global tariffs, imposed under Section 122 of the Trade Act, is also facing litigation but those tariffs have already expired.

In the latest complaint, the two companies criticize Trump for again asserting that the executive branch has the unilateral power to impose global tariffs. The plaintiffs' representative, the Liberty Justice Center, previously challenged Trump's two earlier rounds of global tariffs.