A non-profit organization that previously sued the Trump administration over the president's tariffs has filed a new lawsuit challenging the levies imposed following a recent Supreme Court decision. The Liberty Justice Center lodged the complaint on Monday at the US Court of International Trade on behalf of spice importer Burlap & Barrel and toy company Basic Fun.
The lawsuit targets the 10% global tariffs that President Trump announced after the Supreme Court ruled on February 20 that the levies imposed under the International Emergency Economic Powers Act were unconstitutional. The new tariffs have been in effect since February 24, with the White House indicating plans to increase them to 15%.
This time, the administration is invoking Section 122 of the Trade Act of 1974 as the basis for the tariffs. However, the Liberty Justice Center argues that this section does not grant the executive branch the authority to implement such levies.
Jeffrey Schwab of the Liberty Justice Center, who presented the previous tariff case before the Supreme Court, stated, “Section 122 authorizes temporary tariffs for certain economic conditions that do not currently exist; it is not a general license for the President to tax the American people for reasons Congress never intended.”
Basic Fun, headquartered in Boca Raton, Florida, produces Tonka Trucks and other toys in China, while New York City-based Burlap & Barrel imports spices from small farmers worldwide.
The lawsuit follows a separate legal action filed on March 5 by twenty-four states challenging the new tariffs. The White House has pledged to vigorously defend the tariffs in court, asserting that President Trump is utilizing his authority granted by Congress to address international payments issues and balance-of-payments deficits.
The Trump administration has not yet responded to the new complaint. Last week, the Court of International Trade ordered the government to refund a minimum of $130 billion in tariffs that importers have already paid.
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