Trump Faces Legal Challenge Over New Tariffs Amid Concerns They May Be Unlawful

The Trump administration imposed new tariffs on goods from over 80 countries under Section 301 of the Trade Act of 1974, citing failures to prohibit forced labor practices. However, legal experts argue that this use of the statute may not hold up in court and could be seen as an attempt to recreate a previously invalidated global tariff regime. Hours after these tariffs took effect on May 28, two small businesses filed a lawsuit challenging their legality. The plaintiffs claim Trump is using Section 301 as a pretext for imposing broad duties that mirror the recently struck-down IEEPA-based tariffs. Legal scholars suggest this could be another major setback in his trade agenda. The administration maintains it's addressing legitimate concerns about forced labor and insists these measures are distinct from prior actions. Nonetheless, legal challenges continue to mount against Trump’s aggressive tariff strategy.

By Kevin Breuninger · CNBC ·

Trump Faces Legal Challenge Over New Tariffs Amid Concerns They May Be Unlawful

Topics: forced labor allegations Section 301 of the Trade Act tariffs Trump administration trade policy

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