Legal Basis of New U.S. Tariffs Faces Risks; Chinese Firms Say Impact Is Easing
Nashnova编辑部
A CSIS report warns that Trump's forced-labor tariffs on 60 economies rest on shaky legal ground and face court challenges; meanwhile, major Chinese firms say the tariff hit is fading — but new trade barriers are taking its place.
What exactly was imposed?
Announced July 23, the tariffs hit 60 economies — including China, India, Japan, and South Korea — at rates of 10% to 12.5%.
The legal basis is Section 301 of the Trade Act of 1974 — a provision letting the president unilaterally raise tariffs when a trading partner engages in "unreasonable" practices.
The stated rationale: existing measures failed to keep goods made with forced labor out of supply chains.
Why is the legal footing called "shaky"?
Washington think tank CSIS (Center for Strategic and International Studies) published a report Monday, authored by trade experts Scott Kennedy and Claire Reade.
The core finding: this forced-labor Section 301 investigation has "several unique attributes" that make it vulnerable to court challenge on multiple fronts.
This means → if the administration failed to meet the statute's specific procedural requirements, courts could strike the tariffs down. The question is not whether lawsuits will come, but whether the tariffs can survive them.
How are Chinese firms responding?
A separate report shows major Chinese companies already feel the tariff impact easing.
But they expect new pressure from other trade barriers to follow.
In plain terms = the "sting" of the tariffs themselves is fading, but trade friction has not ended — it is just changing form.
Content is for reference only, not financial advice.