Two small businesses have filed a legal challenge against the Trump administration over new tariffs imposed on more than 80 countries, including key U.S. allies such as Canada, Mexico, and members of the European Union. The lawsuit, lodged on Friday in a federal trade court, contests the administration’s latest use of trade authority under Section 301 of the Trade Act of 1974, a statute permitting investigations into unfair foreign trade practices and enabling the president to impose tariffs in response.

The plaintiffs, Burlap and Barrel, a New York-based spice retailer, and Collective Horology, a California watch seller, are represented by the Liberty Justice Center. This legal group has a history of contesting President Trump's tariffs and previously succeeded in challenging his earlier tariff regimes during his second term. The core of their argument is that the administration has extended Section 301 beyond its intended limits by launching broad, simultaneous tariff investigations and setting penalty rates before concluding those inquiries.

In June, the administration found fault with 86 countries for alleged failures to curb forced labor—a claim the plaintiffs say was insufficiently substantiated for each nation. Tariffs ranging from 10 to 12.5 percent were announced last Friday, with little differentiation based on the countries' labor laws. For example, Canada, which has laws prohibiting forced labor, faces a 10 percent tariff, while China, frequently criticized by U.S. officials over forced labor, was subject to a 12.5 percent duty. Foreign governments have been assured that tariff rates would align with their existing trade agreements.

The Liberty Justice Center asserts that U.S. Trade Representative Jamieson Greer did not conduct thorough, country-specific investigations and instead issued findings and tariffs in a consolidated manner. They also cite previous statements from President Trump and administration officials indicating an intention to replicate previously invalidated tariffs, suggesting predetermined outcomes rather than decisions based on factual determinations.

The legal challenge raises constitutional questions about the scope of presidential power to impose tariffs without Congressional approval. The Liberty Justice Center’s chair, Sara Albrecht, emphasized that while addressing forced labor is a critical goal, “an important objective does not give the government permission to ignore the law,” noting the administration replaced an earlier global tariff regime rejected by courts with a similar one under a different statute.

The White House has not commented directly on the lawsuit. President Trump characterized the tariffs as “standard,” referencing prior use, and a senior administration official described the new tariffs as distinct from those struck down earlier, while affirming the administration’s commitment to employing all legal tools to enforce trade policy.

In addition to the lawsuit filed by Burlap and Barrel and Collective Horology, another group of small businesses, including the educational toy company Learning Resources, filed a similar challenge on Friday, continuing the legal pushback against the administration’s tariff approach.

These ongoing disputes are expected to return to the Court of International Trade, which has repeatedly found the administration exceeded its legal authority. Past rulings have resulted in the government owing roughly $160 billion to importers who paid tariffs later deemed unlawful.

The new tariffs have also drawn scrutiny from state officials. Oregon Attorney General Dan Rayfield indicated his office was reviewing the administration’s actions and criticized the president for “trying yet another way to impose the same costs on working families who are already struggling.”

Looking ahead, the administration is reportedly exploring additional tariffs under Section 301 targeting 15 countries and the European Union over alleged unfair manufacturing practices. On Friday, President Trump announced a new investigation into the European Union’s fines on U.S. technology firms.

Separately, the administration has invoked an obscure legal provision to impose a 50 percent tariff on billions of dollars in Canadian exports, a move set to take effect in 30 days and likely to face further legal challenges.