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U.S. small businesses file lawsuit challenging Trump’s new ‘forced labor’ tariffs

July 24, 2026//

A cargo ship full of shipping containers is seen at the port of Oakland, California

A cargo ship full of shipping containers is seen at the port of Oakland, California, U.S., August 4, 2025. REUTERS/Carlos Barria

A cargo ship full of shipping containers is seen at the port of Oakland, California

A cargo ship full of shipping containers is seen at the port of Oakland, California, U.S., August 4, 2025. REUTERS/Carlos Barria

U.S. small businesses file lawsuit challenging Trump’s new ‘forced labor’ tariffs

// July 24, 2026//

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NEW YORK, July 24 (Reuters) – Two U.S. small businesses on Friday challenged President Donald Trump’s latest round of tariffs on goods from 60 trading partners, saying that the new policy, like most of Trump’s previous tariffs, went beyond the president’s authority to tax imports.

The lawsuit, filed in the U.S. trade court in New York, argues that the new tariffs require more detailed country-specific findings about “forced labor to be legally justified. The two small businesses, backed by a nonprofit legal group that successfully sued over previous rounds of tariffs, argued that the president is trying to re-impose tariffs that were already ruled illegal by the U.S. Supreme Court.

 

(Reporting by Dietrich KnauthEditing by Nick Zieminski)

 

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