Economy July 24, 2026 02:50 PM

Legal Challenge Filed Against New U.S. Tariffs at Court of International Trade

Liberty Justice Center sues over 10% to 12.5% duties, arguing limits on trade representative's authority under U.S. law

By Jordan Park
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Liberty Justice Center brought a lawsuit Friday in the Court of International Trade contesting President Trump's recently announced tariffs of 10% to 12.5% on several major trading partners. The group says the duties exceed the authority granted under the Trade Act of 1974 and represent an effort to restore a broader tariff policy previously struck down by the Supreme Court.

Legal Challenge Filed Against New U.S. Tariffs at Court of International Trade
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Key Points

  • Liberty Justice Center sued in the Court of International Trade over tariffs of 10% to 12.5%.
  • The group previously prevailed in a February Supreme Court case that struck down an earlier wave of tariffs.
  • Two small retailers are plaintiffs, highlighting impacts on retail and import-dependent businesses.

Liberty Justice Center on Friday filed suit in the Court of International Trade to challenge President Trump's latest set of tariffs, which impose duties of 10% to 12.5% on major U.S. trading partners.

The legal group, which secured a victory at the Supreme Court in February that nullified the administration's first round of tariffs, argues that the new duties are an unlawful attempt to reinstate a global tariff approach that the high court rejected.

The administration implemented the duties under Section 301 of the Trade Act of 1974, citing concerns related to forced labor. The complaint argues that the statute does not authorize the U.S. trade representative to levy broad tariffs on multiple countries without making an individualized finding that each country failed to prohibit or effectively enforce bans on importing goods produced with forced labor.

Liberty Justice Center is representing two small businesses in the action: Collective Horology, a California-based watch retailer and distributor, and Burlap & Barrel, a spice retailer headquartered in New York. Burlap & Barrel was among two firms that challenged temporary tariffs imposed under Section 122 of the trade law following the Supreme Court decision.

The lawsuit centers on statutory interpretation and administrative authority, asserting limits on the ability of the U.S. trade representative to apply broad remedies under Section 301 without country-specific findings. The plaintiffs contend the recent duties mirror the broader policy the Supreme Court previously invalidated.


Key points

  • Liberty Justice Center filed suit Friday in the Court of International Trade contesting newly imposed 10% to 12.5% tariffs.
  • The group previously won a Supreme Court decision in February that struck down the administration's initial tariffs, and it says the new duties attempt to restore that broader policy.
  • Two small retailers are plaintiffs: Collective Horology (watches) and Burlap & Barrel (spices), underscoring direct effects on retail and import-dependent businesses.

Risks and uncertainties

  • Legal uncertainty - The case raises questions about how authority under the Trade Act of 1974 may be applied, which can affect businesses reliant on imports.
  • Policy continuity - The suit alleges the new duties seek to reestablish a tariff approach previously invalidated by the Supreme Court, creating ambiguity for affected sectors.

Risks

  • Legal uncertainty about the scope of authority under the Trade Act of 1974 could disrupt planning for importers and retailers.
  • The lawsuit alleges the new duties attempt to restore a broader tariff policy that the Supreme Court previously invalidated, creating policy ambiguity for affected sectors.

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