President Trump's administration has enacted new tariffs under Section 301 of the Trade Act of 1974, claiming they address forced labor practices among trading partners. This move affects 99.4% of U.S. trade and follows a previous legal setback where the Supreme Court invalidated his global tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Legal experts, including Peter Harrell from Georgetown University and Kimberly Clausing from UCLA, argue that Trump's application of Section 301 is unprecedented and likely unlawful, as it appears to recreate a broad tariff regime that the courts have already rejected.
A lawsuit filed by two small businesses contends that these new tariffs are a pretext for maintaining the same tariff structure previously deemed unauthorized. The administration insists that addressing forced labor is a longstanding priority, but critics argue there is no clear link between these tariffs and the stated policy goal.
The legal challenges could take time to resolve, leaving businesses uncertain about the future of these tariffs. Experts suggest that companies should prepare for the tariffs to remain in place rather than expect quick reversals, as the extensive record under Section 301 may complicate any potential unwinding of these duties