In the lawsuit filed by two companies, the plaintiffs argued that the tariffs, ranging from 10% to 12.5% and imposed on trading partners that account for approximately 99.4% of U.S. imports, are unlawful. They contended that the measures exceed the authority delegated by Congress to the executive branch.
According to the court filing, the recent actions taken under Section 301 of the Trade Act not only constitute an overreach of authority but were also implemented through a process that was "arbitrary and lacking adequate justification."
The Office of the United States Trade Representative (USTR) had previously announced that additional tariffs of 10% or 12.5% would be imposed on 60 trading partners following investigations that found they had failed to meet their obligations to prevent the import of goods produced through forced labor.
The Trump administration's move came after the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. The decision was also implemented shortly before the expiration of the temporary 10% global tariff measures introduced under Section 122 of the Trade Act on February 24, which had been in effect for 150 days.
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