Two small US companies have launched a legal challenge against the Trump administration’s latest round of global tariffs, arguing the government is attempting to bypass a recent Supreme Court ruling that invalidated earlier import duties.
The lawsuit was filed by spice importer Burlap & Barrel and toy manufacturer Basic Fun. The companies claim the administration is using an outdated trade law to reintroduce a blanket 10 percent tariff on imported goods after the Supreme Court ruled that most of the previous tariffs were unlawful.
According to the complaint, the government’s interpretation of the law stretches its original purpose. The statute in question was historically designed to address monetary imbalances rather than routine trade deficits. The companies argue that using it to impose broad tariffs amounts to an unlawful expansion of presidential authority over trade policy.
The case marks the first private legal challenge to the new tariffs. It follows a separate lawsuit filed by a coalition of 24 US states that raised similar objections about the administration’s legal justification for reintroducing import duties.
Business owners involved in the lawsuit say the tariffs place disproportionate pressure on small importers that rely on global supply chains. Ethan Frisch, co-founder of Burlap & Barrel, said the policy has increased operating costs for companies that source products from overseas and ultimately raises prices for consumers.
The Supreme Court previously ruled that the administration could not rely on the International Emergency Economic Powers Act to impose tariffs, stating that the law had historically been used for economic sanctions rather than trade restrictions.
Tariffs have remained a central element of the administration’s economic strategy, often used as leverage in negotiations with trading partners. However, the latest legal challenge could once again place the policy under judicial scrutiny, raising questions about the limits of executive authority in shaping US trade policy.
