(LEAD) 2 U.S. businesses sue Trump gov't over new Section 301 tariffs

Go to Contents Go to Navigation Facebook X More Pinterest Linked in Tumblr Reddit Facebook Messenger Copy URL URL is copied. OK (ATTN: ADDS Trump's remarks in last 4 paras)By Song Sang-ho WASHINGTON, July 24 (Yonhap) -- Two small U.S.

businesses on Friday filed a lawsuit against new tariffs on dozens of U.S. trading partners that President Donald Trump's administration announced the previous day over forced labor concerns, according to a litigation firm.

The Liberty Justice Center said that it filed the lawsuit in the U.S. Court of International Trade on behalf of Burlap & Barrel, a New York-based online retailer, and Collective Horology, a California-based retailer, after the U.

S. Trade Representative (USTR) announced new tariffs of up to 12.5 percent on South Korea and other economies.

The latest U.S. duties came after the USTR conducted investigations into 60 economies under Section 301 of the 1974 Trade Act to determine whether they had taken sufficient steps to ban imports made with forced labor.

The duties took effect Friday as the administration's 150-day 10 percent global tariff lapsed on the day. The complaint alleges that the USTR acted "arbitrarily and capriciously" by imposing near-uniform tariffs across 60 materially different economies "without a reasoned, record-based explanation" for how the tariffs would address the practices the USTR identified. It also alleges that the USTR failed to explain how taxing those products will cause foreign governments to change their import policies.

The litigation firm pointed out that the new tariffs cover lawful imports with no demonstrated connection to forced labor, including products imported by American small businesses with transparent and responsible supply chains. "Forced labor is morally indefensible, but an important objective does not give the government permission to ignore the law," Sara Albrecht, chairman and CEO of the Liberty Justice Center, said. "The administration allowed one global tariff to expire and immediately replaced it with another under a different statute.

Changing the statute doesn't change the law. Every tariff authority has limits, and every administration must respect them." The firm is the same organization that challenged the Trump administration's emergency tariffs that were struck down by the Supreme Court in February.

Responding to a reporter's question about whether new U.S. tariffs can withstand legal scrutiny, Trump said that "these tariffs have been up for a long time" and that they have been "approved for years."

"I thought the decision by the Supreme Court was not a good one," he said of the ruling against his emergency tariffs. "But we have many forms of tariffs." He defended his tariff policy, underscoring that it has helped attract investments.

"Largely because of tariffs, we have $19.2 trillion being invested in our country," he said during the press availability at the White House. "And without tariffs, we would be in big trouble."

This file photo, released by the Associated Press, shows the U.S. Court of International Trade in New York on March 18, 2015.

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Thanks for your feedback! CLOSE (ATTN: ADDS Trump's remarks in last 4 paras)By Song Sang-ho WASHINGTON, July 24 (Yonhap) -- Two small U.S.

businesses on Friday filed a lawsuit against new tariffs on dozens of U.S. trading partners that President Donald Trump's administration announced the previous day over forced labor concerns, according to a lit