Trump sued hours after new tariffs take effect, as experts say they may not hold up - CNBC

The Trump administration imposed sweeping new tariffs on goods from over 80 countries, covering 99.4% of U.S. trade, alleging these partners failed to effectively prohibit forced labor practices.
The duties were enacted under Section 301 of the Trade Act of 1974, a statute historically used to threaten or impose tariffs, including against China during Trump's first term.
Trade experts warn Trump is applying the law in a fundamentally new way; Georgetown scholar Peter Harrell said Section 301 was never meant to let a president rewrite the tariff schedule wholesale or impose permanent duties, and predicted it could be struck down.
Just hours after the tariffs took effect on Friday, July 24, 2026, two small businesses filed suit in the U.S. Court of International Trade, arguing the administration is using Section 301 as a pretext to recreate the global tariff regime the Supreme Court struck down five months earlier.
The lawsuit highlights that the Section 301 tariffs began exactly as another set of duties, imposed under Section 122 of the 1974 law, expired.
Trump signaled Section 301 as a broader tool for future action, announcing an immediate investigation into the EU over fines on U.S. tech companies, alongside recent 25% tariffs on Brazilian imports and threatened 50% tariffs on some Canadian goods.