A panel of federal judges in the Court of International Trade in New York City will on September 30 hear the third major legal challenge in that court to President Donald Trump’s tariffs.
The New York Times reports that this case focuses on the use of Section 301 of the Trade Act of 1974 as a justification for the wide-ranging tariffs on imports from the U.S.’s trading partners. The act allows the administration to investigate unfair trade practices and impose tariffs if it finds that American businesses were harmed. In July, the government cited the statute to justify imposing tariffs on 86 countries, claiming that they had failed implement sufficient measures to prevent forced labor, putting U.S. firms that are subject to better worker protections at a competitive disadvantage.
The tariffs, which range from 10% to 12.5% cover more than 99% of goods imported into the U.S.
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Reuters reports that three lawsuits have been consolidated into one to put before the specialized circuit court. They argue that rather than conducting the required, country-specific investigations into forced labor, Trump is simply using “forced labor” as a pretext to pursue an unfettered global tariff power that U.S. courts have repeatedly rejected.
The judges on the Court of International Trade in downtown Manhattan have twice ruled against Trump in major tariff cases. The Times says another defeat could again force the administration to surrender any money it has collected, as it has been doing with the “Liberation Day” tariffs announced April 1, 2025, which were struck down by the Supreme Court in February.
