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

• The tariffs were imposed using Section 301 of the Trade Act of 1974, which experts say Trump is using 'in a fundamentally different way' than intended, potentially making them vulnerable to being struck down in court
• A lawsuit filed in the U.S. Court of International Trade argues the Section 301 tariffs are designed to replicate the same global tariff regime that the Supreme Court invalidated in February under IEEPA
• The tariffs took effect immediately as previous Section 122 tariffs expired, covering trade partners that account for 99.4% of U.S. trade, though businesses are advised to plan around current tariffs rather than expect quick reversal

Summary

Key Development:

President Trump's administration imposed new tariffs on goods from over 80 countries (covering 99.4% of U.S. trade) under Section 301 of the Trade Act of 1974, citing inadequate prohibition of forced labor practices. Within hours of implementation, two small businesses filed a lawsuit challenging the tariffs' legality.

Legal Concerns:

Trade experts argue Trump is using Section 301 in unprecedented ways, beyond its original intent. The statute was designed to address specific unfair trade practices, not to "wholesale rewrite the tariff schedule" with permanent duties. Critics contend these tariffs are merely a pretext to recreate the global tariff regime struck down by the Supreme Court five months earlier, when justices ruled Trump couldn't use the International Emergency Economic Powers Act (IEEPA) for broad tariffs.

Additional Tariff Actions:

• Trump announced a Section 301 investigation into the EU over tech company fines
• Imposed 25% duties on Brazilian imports via Section 301
• Previously used Section 122 authority for temporary tariffs after the Supreme Court's February 20 ruling

Expert Opinions:

UCLA professor Kimberly Clausing called the tariffs "clearly unlawful," while Peterson Institute fellow Alan Wolff predicted the Supreme Court would likely strike them down. However, former USTR general counsel Greta Peisch noted the administration followed proper procedures and Section 301's language provides "a lot of flexibility."

Business Impact:

KPMG advises companies to plan around existing tariffs rather than assume quick reversal, as legal challenges will take considerable time to resolve through the court system.