Small firms sue to overturn Trump-era forced-labor import tariffs
Two small importers have filed a case in the Court of International Trade, claiming the Trump administration’s forced-labor tariffs exceed statutory authority.
Importers Burlap & Barrel and Collective Horology are challenging the Trump administration’s forced-labor tariffs before the Court of International Trade, asserting that the duties were levied without the required legal findings. The suits, filed by the Liberty Justice Center, claim the tariffs breach Section 301 of the Trade Act of 1974 and are “arbitrary and capricious.” Former trade official Alan Wm.
Wolff, a co-author of the forced-labor statute, criticized the policy as a fabricated test applied to 60 economies. This litigation follows a prior Liberty Justice Center victory that struck down the president’s emergency tariffs under IEEPA. The new duties, covering 99.4% of U.S. imports, were imposed after earlier tariffs expired, and the plaintiffs seek class-status to represent all affected small businesses. Government agencies have declined to comment on the ongoing case.
Why it matters
The case could limit the government’s ability to impose broad tariffs without specific legal justification, affecting many small U.S. importers.
How this story developed
- Sep 2 Diesel hits $5.68 per gallon, highest since 2022, as Trump urges price cuts
- Sep 18 The Trump administration finalized a partnership to develop 17 oil fields in Venezuela.
- Sep 19 Diesel prices reached $5.68 per gallon, the highest figure since 2022.
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 22 Trump told reporters he wants to stop sending diesel abroad, citing the surge in diesel costs driven by conflicts in Iran and Ukraine. Treasury Secretary Scott Bessent said the administration is reviewing whether a full or partial ban is feasible. Republican Senate hopefuls, including Ashley Hinson, have urged the government to adopt the ban to ease price pressures on Americans.
- Sep 23 Rural GOP lawmakers have publicly demanded action on diesel exports ahead of the November election.
- Sep 24 President Trump announced support for a diesel export ban.
- Sep 24 Gas storage levels are now reported at about 69% of capacity, below the usual seasonal target.
- Sep 25 Refinery output shifts and refinery strikes have created a measurable shortfall in bunker‑fuel supply for the third quarter.
- Sep 26 The European Union has asked the administration to keep U.S. diesel exports flowing amid the price surge.
- Sep 26 President Donald Trump announced new fuel-economy rules that scrap the electric-vehicle mandate introduced under Joe Biden.
- Sep 27 The yen rose about 0.8% to 157.65 per dollar after Finance Minister Satsuki Katayama highlighted possible coordinated intervention.
- Sep 28 The 2031 fuel‑economy target was lowered to roughly 34.9 mpg.
- Sep 29 Trump said he will look into limiting diesel exports.
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