A coalition of American businesses has filed a federal lawsuit challenging the Trump administration’s expanded forced labour tariff regime, arguing that the measures exceed the executive branch’s authority and threaten to uproot supply chains that have spent years restructuring for compliance.
The plaintiffs contend that the administration’s broadened interpretation of the statute — applying it to entire categories of goods rather than specific producers — goes beyond what Congress intended and violates due process.
Industry groups estimate that the widened restrictions could affect tens of billions of dollars in annual trade, with retailers facing higher costs and potential shortages ahead of the crucial holiday season.
The case, filed in the Court of International Trade, is likely to take months to resolve, leaving the industry in a state of legal limbo as it navigates compliance obligations that the lawsuit itself may invalidate.
