Two small businesses sue Trump administration over new global tariffs

Two small U.S. businesses have filed a lawsuit against the Trump administration in the U.S. Court of International Trade, challenging the legality of new global tariffs introduced under Section 301 of the Trade Act of 1974. The tariffs, which took effect on July 24, 2026, impose duties ranging from 10% to 12.5% on imports from most major trading partners. The lawsuit argues that the administration unlawfully used Section 301 to replace earlier tariff programs struck down by the U.S. Supreme Court, including measures issued under the International Emergency Economic Powers Act (IEEPA) and Section 122 of the Trade Act. The plaintiffs claim the new tariffs fail to meet the country-specific inquiry requirement mandated by Congress under Section 301, effectively replicating the invalidated IEEPA tariff regime without proper justification. The Section 122 tariffs, which were also global in scope, expired on July 24, 2026. The lawsuit, filed as Burlap and Barrel Inc. v. Greer, seeks to block the implementation of the new tariffs, arguing they unlawfully expand executive authority beyond congressional intent. Spokespersons for the U.S. Trade Representative, White House, and Department of Justice declined to comment immediately.