Small Businesses Battle Trump Tariffs in Court Challenge

Two small businesses, Burlap & Barrel and Basic Fun Inc., have filed a lawsuit against the Trump administration's recent tariffs, arguing they are based on a misinterpretation of trade law. The lawsuit reflects concerns among importers and consumers about the impact on prices and trade practices.

Two small businesses filed a lawsuit against the Trump administration on Monday, challenging the latest round of tariffs. They argued that President Trump cannot legally reimpose a 10-percent tax on imported goods after the U.S. Supreme Court invalidated previous tariffs.

The plaintiffs, spice importer Burlap & Barrel and toy company Basic Fun Inc., say the tariffs are based on a misinterpretation of an outdated trade law not intended to address modern trade deficits. Burlap & Barrel's co-founder, Ethan Frisch, stated that these tariffs primarily harm small importers and American consumers instead of targeting foreign governments.

Frisch emphasized that sudden global tariffs disrupt operations and increase costs for American families, saying, "trade policy shouldn't be invented to create an economic crisis." The lawsuit, supported by the legal nonprofit Liberty Justice Center, is the first private challenge to the new tariffs following the Supreme Court's decision on February 20 that deemed most of Trump's tariffs illegal.

(With inputs from agencies.)