Trump sued hours after new tariffs take effect, as experts say they may not hold up - CNBC

What the report says

CNBC reported that President Donald Trump’s administration imposed a new round of tariffs on imports from more than 80 countries on Friday, citing concerns that those trading partners had not done enough to prevent forced labor practices. The duties were issued under Section 301 of the Trade Act of 1974 and cover countries representing nearly all U.S. trade, according to the report.

The move quickly drew a legal challenge. CNBC said two small businesses sued Trump and his administration in the U.S. Court of International Trade within hours of the tariffs taking effect. The lawsuit argues that the administration is using Section 301 to recreate a broad global tariff program after the Supreme Court rejected Trump’s earlier use of the International Emergency Economic Powers Act to impose sweeping duties. The challenge was brought by the Liberty Justice Center, which was involved in the earlier successful case.

Trade experts cited by CNBC were divided on how durable the new tariffs may be. Peter Harrell of Georgetown University Law Center said Section 301 was not designed to let a president broadly rewrite tariff policy, while UCLA law professor Kimberly Clausing and Peterson Institute fellow Alan Wolff also questioned the legal basis. Greta Peisch, a former U.S. trade official, said the statute gives the government significant flexibility, and KPMG’s Andrew Siciliano said companies should plan around the tariffs now in force.

The tariffs are part of a wider burst of trade actions, including 25% duties on Brazilian imports and a threatened 50% tariff on some Canadian goods. CNBC reported that the administration denies it is simply reviving its earlier “liberation day” tariff agenda.