Two small businesses have sued the Trump administration over its sweeping new tariffs, which hit 60 countries and account for 99% of all US imports. The lawsuit, filed in the US Court of International Trade, argues the administration unlawfully used Section 301 of the Trade Act of 1974 to impose the levies, which President Donald Trump justified by accusing America’s trading partners of not doing enough to tackle forced labour.
The UK’s tariff remains at the 10% rate that Sir Keir Starmer secured last year, but the new regime puts British businesses at a disadvantage against the EU, which now has a better deal than before. The escalation means the UK is squeezed between a rising trade barrier and the bloc’s more favourable terms, even as American firms and importers prepare for legal battles.
“Trump slaps new tariffs on 60 countries, putting UK at disadvantage against EU as businesses sue.”
The lawsuit tees up another legal fight over Trump’s trade policy, following previous challenges to his use of emergency powers and national security claims. The plaintiffs, two small businesses, did not specify the exact impact on their operations, but the case threatens to delay or unwind the tariffs if the court finds the administration overstepped its authority.
Trump’s latest move marks a significant escalation in his trade war, extending the reach of tariffs far beyond the initial targets. While the UK avoided a steeper hike, the new deal for the EU raises questions about whether Starmer’s negotiation achieved the best outcome for British exporters, who now face a competitive disadvantage in the US market.
The legal challenge is the first direct response from businesses affected by the tariffs, and its outcome could shape the future of US trade policy. For now, UK firms must navigate a landscape where their biggest trading partner has erected new barriers, and their closest neighbours have a clearer path.