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A U.S. flag and a "tariffs" label are seen in this illustration taken April 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
A U.S. flag and a "tariffs" label are seen in this illustration taken April 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Small businesses sue Trump over new global tariffs
Dietrich Knauth
Reuters //March 9, 2026//
NEW YORK (Reuters) – Two small businesses on Monday sued the Trump administration over its latest round of tariffs, saying that the president cannot simply use a different law to reimpose a global 10-percent tax on imported goods after the U.S. Supreme Court struck down the administration’s previous tariffs.
In Brief:
- Two small businesses filed a lawsuit challenging the Trump administration’s latest global tariffs.
- The suit argues the new 10% import tariff violates the Supreme Court ruling that struck down earlier tariffs.
- Companies say the tariffs raise costs for small importers and American consumers.
- The legal challenge claims the administration is misusing an old trade law to justify the policy.
The lawsuit, filed by spice importer Burlap & Barrel, Inc. and toy company Basic Fun Inc., mirrors arguments made last week by a coalition of 24 U.S. states, saying that Republican President Donald Trump is imposing the new tariffs based on a misreading of an archaic trade law that was meant to address historical monetary concerns rather than routine trade deficits.
Ethan Frisch, co-founder of Burlap & Barrel, said in a statement that the tariffs mostly hurt small U.S. importers like his company and American consumers, rather than foreign governments.
“Sudden global tariffs make it harder for us to operate, harder for our partners to sell their crops, and more expensive for American families,” Frisch said. “We joined this case because trade policy shouldn’t be made by inventing an economic crisis.”
The lawsuit, filed by the legal nonprofit Liberty Justice Center, is the first private lawsuit to challenge the new tariffs.
Trump has made tariffs a central pillar of his foreign policy, using them as leverage to negotiate trade deals around the globe. But the U.S. Supreme Court ruled on February 20 that most of Trump’s tariffs were illegal, invalidating tariffs that he had imposed under the International Emergency Economic Powers Act, a law that had previously never been used to impose tariffs.
(Reporting by Dietrich Knauth; Editing by Aurora Ellis)
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