The administration of US President Donald Trump faced a lawsuit\nwithin hours of its latest import tariffs on more than 80 countries\n(previously 60) taking effect. A number of trade law experts believe the\npolicy could meet the same fate as the reciprocal tariffs previously\nstruck down by the courts.<\/p>\n
The new tariffs came into force on Friday under Section 301 of the\nTrade Act of 1974. This is one of the strongest trade instruments\navailable to the US government, as it authorises the Office of the US\nTrade Representative (USTR) to investigate and take action against\ncountries deemed to engage in unfair trade practices or violate US trade\nrights.<\/p>\n
However, Peter Harrell, a visiting researcher at Georgetown\nUniversity Law Center, argues that the Trump administration\u2019s use of\nSection 301 exceeds its original purpose. \u201cSection 301 was never\nintended to allow a president to permanently rewrite the entire tariff\nstructure,\u201d Harrell said, expressing confidence that the policy will\n\u201calmost certainly\u201d be struck down in court, as reported by CNBC\nInternational on Monday (27\/7\/2026).<\/p>\n
Trump invoked Section 301 on the grounds that dozens of countries had\nfailed to effectively combat forced labour practices. The new tariffs\nare divided into three tiers for trading partners: a 10% tariff (which\nincludes Indonesia), tariffs of 10% or 12.5%, and tariffs of 12.5%.<\/p>\n
The US government has also signalled it may open a similar\ninvestigation into the European Union in response to the large fines\nimposed on several American technology companies. The tariffs came days\nafter Trump imposed a 25% tariff on Brazilian imports and threatened 50%\ntariffs on a number of Canadian products.<\/p>\n
Details of the Lawsuit<\/p>\n
Shortly after Trump\u2019s tariff rules took effect over the weekend, two\nsmall companies reportedly filed a lawsuit with the US Court of\nInternational Trade. The suit accuses the Trump administration of using\nSection 301 as a pretext to revive a \u201cglobal tariff regime\u201d previously\nstruck down by the courts in a ruling on the use of the US International\nEmergency Economic Powers Act (IEEPA).<\/p>\n
According to the court filings, the new tariffs essentially preserve\n\u201cthe same tariff scheme as the previous policy\u201d, merely \u201cwrapped up in\nthe justification of combating forced labour\u201d. The plaintiffs argue that\nSection 301 does not authorise the government to impose tariffs on\nnearly all imports from most trading partners simply to replace the\nIEEPA-based tariff regime that has already been invalidated.<\/p>\n
The Trump administration denies the allegations. A senior\nadministration official said forced labour has long been a concern of\nthe president.<\/p>\n
\u201cAddressing forced labour is something that has been a focus of\nPresident Trump for many years,\u201d the official said, adding that the\nmeasure was taken \u201cto avoid complexity\u201d.<\/p>\n
The Liberty Justice Center, a non-profit law firm, has also filed\nsuit. It argues the government cannot maintain a global tariff policy\nsimply by swapping the legal basis it relies upon.<\/p>\n
Kimberly Clausing, a professor of tax law at UCLA and senior\nresearcher at the Peterson Institute for International Economics (PIIE),\nshares that view. According to Clausing, the forced labour justification\nis merely a pretext for reviving tariffs previously struck down.<\/p>\n
\u201cIn my view, tariffs under Section 301 are clearly unlawful,\u201d she\nsaid.<\/p>\n
Could Be Struck Down Again<\/p>\n
Another senior PIIE researcher, Alan Wolff, also expects the Supreme\nCourt could strike down the policy. According to Wolff, Section 301\nrequires evidence that a country\u2019s policies or practices genuinely\nburden or restrict US commerce.<\/p>\n
\u201cThat requirement\u2026 is difficult to prove against the roughly 60\ncountries targeted by the tariffs,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/trumps-new-trade-tariffs-on-indonesia-and-others-challenged-face-cancellation-1785131457", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }