Trump's Section 301 tariffs face lawsuit seeking removal, refunds
Two U.S. businesses, spice importer Burlap and Barrel and watch retailer Collective Horology, have filed a lawsuit against the federal government over new Section 301 tariffs imposed on July 24, 2026. The tariffs, targeting over 60 trading partners over forced labor concerns, were implemented 150 days after temporary Section 122 tariffs were enacted following a Supreme Court ruling that invalidated earlier IEEPA-based tariffs. The lawsuit, filed with the U.S. Court of International Trade, argues the tariffs are 'arbitrary and capricious' and a backdoor attempt to replace previously removed levies. It claims the Trump administration predetermined tariff rates (10-12.5%) before concluding the investigation and rushed the process, breaking historical precedent. The plaintiffs seek removal of the duties and refunds. Legal experts note the administration faces a difficult burden to justify the rate structure.
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