US Small Businesses Challenge Section 301 Tariffs

Two small businesses in the US, Burlap & Barrel and Collective Horology LLC, have filed a case against the US Trade Representative (USTR) for using Section 301 to impose tariffs on almost all imports from 60 countries, including India.

They argue that this broad application of tariffs is unconstitutional and exceeds the authority granted by Congress.

The tariffs have significantly impacted trade, with exports of non-excluded products falling by 11.2% from 2025 to 2026.

The USTR, however, maintains that Section 301 provides the necessary authority to address unfair trade practices.

The case highlights the ongoing debate over the use of trade tools like Section 301 and their impact on global trade.