A spice importer and watchmaker have filed a lawsuit challenging tariffs implemented by the Trump administration under Section 301 of the 1974 Trade Act. The new duties, announced late Thursday, impose either 10% or 12.5% levies on more than 80 countries. The administration justified the tariffs by claiming they prevent the importation of goods made with forced labor.
The lawsuit was brought by the Liberty Justice Center, a libertarian public interest law firm that previously won a U.S. Supreme Court case against the administration’s tariffs earlier in the year. That 6-3 ruling determined the president had exceeded executive authority in issuing what were called “liberation day” tariffs. The Liberty Justice Center is part of the litigation arm of the Illinois Policy Institute.
The plaintiffs contend that Trump’s use of Section 301 authority exceeds legal limits, arguing the statute is designed to be “targeted, country-specific and practice-specific” rather than globally sweeping. They also allege the U.S. Trade Representative failed to provide adequate reasoned explanation for its forced labor determinations and that more country-specific findings are legally required.
The two businesses pursuing the case are Burlap and Barrel, a New York-based spice importer, and Collective Horology, a California watchmaker. Both source materials from countries hit by the tariffs. Ethan Frisch, co-founder and co-CEO of Burlap and Barrel, stated the tariffs would harm responsible American businesses and their suppliers without demonstrating how the duties address foreign government practices.
Sara Albrecht, CEO of the Liberty Justice Center, characterized forced labor as morally indefensible but argued that important objectives do not exempt government from following legal limits on tariff authority. The U.S. Trade Representative did not immediately respond to requests for comment on the lawsuit.
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