New tariffs face lawsuit, fall short on revenue, analysis finds

Two American small businesses sued the Trump administration over its new forced-labor tariffs, arguing the government is preserving a global tariff regime the U.S. Supreme Court already struck down by moving it to a different legal authority.

The lawsuit landed the same day the tariffs took effect. An outside budget analysis found the new duties replace less than 60% of the revenue the government lost when the Supreme Court invalidated President Donald Trump’s tariffs under the International Emergency Economic Powers Act of 1977.

Burlap & Barrel, a New York spice importer, and Collective Horology, a California watch retailer, filed the complaint in the U.S. Court of International Trade, the same court that has twice found the administration’s tariffs unlawful. They are represented by the Liberty Justice Center, the firm that won the Supreme Court case against the earlier IEEPA tariffs and challenged the Section 122 round that followed.

The lawsuit argues the tariffs exceed the admi...