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Businesses sue Trump as he defends 'very standard tariffs'

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Two U.S. businesses are suing former President Donald Trump to block new tariffs on imports from numerous countries, including Australia.
  • The businesses allege that the tariffs, which include a 12.5% levy on Australian imports, were imposed after predetermined findings about forced labor.
  • Legal experts are divided on whether the new tariffs will withstand court challenges, with some seeing a lower chance of success than previous actions.

Two small U.S. businesses are challenging former President Donald Trump's administration in court, seeking to halt new tariffs on imports from dozens of countries, including Australia. The Liberty Justice Center, a non-profit law firm, is representing the businesses, having previously succeeded in challenging Trump's earlier tariffs.

The likelihood of courts overriding these tariffs is significantly lower than previous actions.

โ€” Wendy CutlerAn expert's view on the potential legal challenges to the new tariffs.

The new tariffs, which impose a 12.5% levy on Australian imports, took effect Friday. The administration stated the tariffs were a result of trade investigations that found countries were not doing enough to combat forced labor in their supply chains. However, the suing businesses claim these findings were predetermined and that the tariffs aim to reinstate an unlawful regime.

Legal opinions on the tariffs' durability are split. Some analysts suggest the new "Section 301" tariffs have a significantly lower chance of being overturned by courts compared to previous measures. Conversely, Alan Wolff, a senior fellow at the Peterson Institute for International Economics, views the tariffs as presidential overreach likely to be struck down by the Supreme Court if challenged.

If they were challenged in court, the Supreme Court would likely overturn them.

โ€” Alan WolffAn expert's view on the potential legal challenges to the new tariffs.

Australian businesses anticipate the tariffs will hinder their competitiveness and harm jobs. The Australian government plans to strongly oppose the "unjustified" tariffs through diplomatic channels. Trump, however, defended the measures as "very standard tariffs," suggesting they were a necessary response despite previous court rulings against his trade policies.

They're very standard tariffs.

โ€” Donald TrumpDefending the new import levies.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.