The legal team that successfully challenged the Trump administration’s previous International Emergency Economic Powers Act (IEEPA) tariffs is taking action against the newly enacted Section 301 tariffs.
Background: How We Got Here
- IEEPA Tariffs Struck Down: Following the Supreme Court’s 6-3 ruling invalidating the initial IEEPA-backed tariffs, a lengthy federal refund process began.
- Section 122 Duties Expire: Subsequent tariffs enacted under Section 122 of the Trade Act of 1974 were ruled illegal by the U.S. Court of International Trade, ending collection on July 24.
- New Section 301 Duties Enacted: Minutes after the Section 122 duties expired on July 24, the administration announced replacement Section 301 tariffs covering dozens of countries and the European Union, citing global forced-labor concerns.
The New Legal Challenge
The Liberty Justice Center has filed a new lawsuit (Burlap & Barrel and Collective Horology v. Trump), arguing that the administration is misusing Section 301 as a substitute to maintain a broad, predetermined global tariff policy without statutory authority.
Key points of the challenge include:
- Scope Misuse: Section 301 is designed by statute to be a targeted, country-specific, and practice-specific trade tool – not a broad, blanket tax on global imports.
- Impact on Compliant Supply Chains: The suit notes that the broad tariffs unfairly penalize businesses that maintain transparent, socially audited supply chains free of forced labor.
What It Means for California Seafood Importers
Seafood importers across California and the Pacific Rim are feeling the immediate impact of these new duties. Industry leaders note that even companies with rigorous social audits and vetted supply chains face higher costs and trade friction under the blanket structure.
Legal Counsel Recommendation: Trade attorneys advising seafood importers recommend closely monitoring the progression of the Liberty Justice Center lawsuit. Given how the previous IEEPA litigation unfolded, tracking this challenge early will be critical for assessing potential future duty relief or refund claims.