Small businesses file lawsuits against Trump’s new sweeping tariffs
Law School News
Two lawsuits filed by small businesses are challenging Trump’s sweeping tariffs announced Thursday that impose double-digit levies on 60 trading partners.
The tariffs, implemented under Section 301 of the Trade Act of 1974 for what the Trump administration says is countries’ failure to prevent imports produced by forced labor, cover 99% of U.S. imports. Critics say the goal is less to prevent forced-labor imports and more to replace the worldwide tariffs that Trump imposed last year that were struck down by the Supreme Court in February. They came just as temporary 10% worldwide tariffs — that had also been challenged in court — expired.
Educational toy company Learning Resources, which was part of the tariff lawsuit that won in the Supreme Court, filed a new suit along with several other small businesses in the Court of International Trade on Friday over the current round of tariffs.
The second lawsuit was filed by Burlap and Barrel, a New York-based spice company, and Collective Horology, a watch retailer based in Ventura, California. They are represented by Liberty Justice Center, a libertarian advocacy group.
Both lawsuits argue that the government didn’t adequately establish its case against each specific economy or spell how the tariffs will eliminate the specified practice they are being levied for, as required by Section 301.
“Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law,” said Sara Albrecht, chairman and CEO of the Liberty Justice Center. “The administration allowed one global tariff to expire and immediately replaced it with another under a different statute. Changing the statute doesn’t change the law.”
The White House did not immediately respond to a request for comment.
Experts say it might be tougher to successfully challenge the current round of tariffs than previous rounds. Trump used Section 301 to impose big tariffs on China in his first term, and they survived court challenges.
Unlike the Section 122 levies that expired Friday, “these tariffs will be with us for the long haul,” said lawyer Patrick Childress, a partner at Holland & Knight and a former U.S. trade official.
Even if countries enact the precise policies the U.S. wants, he said, they will still need to prove that they’re enforcing them to Washington’s satisfaction before the tariffs are removed. “This suggests that no short-term path for country-wide relief from the new Section 301 tariffs will be available.”
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Texas Adopts Statewide Texting-While-Driving Ban
Effective September 1, 2017, Texas will become the 47th state to pass a statewide ban on texting while driving. Governor Abbott’s signing of House Bill 62 is an effort to unify Texas under a uniform ban and remedy the “patchwork quilt of regulations that dictate driving practices in Texas.”
The bill specifically prohibits drivers from reading, writing, or sending an electronic message on a device unless the vehicle is stopped. That includes texting and emailing. It does not, however, prohibit dialing a number to call someone, talking on the phone using a hands-free device, or using the phone’s GPS system.
Violations would be punishable by a fine ranging from $25 to $99, to be set by each municipality. Although penalties could rise to as much as $200 for repeat offenders.
Studies have found that a driver’s reaction time is half as much when a driver is distracted by sending or reading a text message. According to state officials, in 2015 more than 105,000 traffic accidents in Texas involved distracted driving, leading to at least 476 fatalities.
