Trump’s forced-labor tariffs on 80-plus countries take effect and draw a lawsuit from two small businesses within hours

by | Jul 25, 2026 | Latest E-commerce News & Updates

Trump imposed tariffs Friday on goods from more than 80 countries over what the administration calls their failure to prohibit forced labor, reaching trade partners that account for 99.4% of US trade. The duties come under Section 301 of the Trade Act of 1974 rather than the emergency powers the Supreme Court rejected in February. Two small businesses sued hours later in the Court of International Trade, arguing the forced-labor rationale is a pretext for rebuilding the same global tariff regime the court threw out. Liberty Justice Center, which won the IEEPA challenge, is representing them. Trade lawyers are split, with Georgetown's Peter Harrell and UCLA's Kimberly Clausing calling the tariffs vulnerable while KPMG's Andrew Siciliano told CNBC that Section 301's long record may make them harder to unwind.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

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