Story perspectives

Burlap & Barrel, Collective Horology Sue Over Forced-Labor Tariffs

7/25/2026

Summary

Story summary

Burlap & Barrel and Collective Horology sued the United States, alleging the forced-labor tariffs exceed Section 301 authority.
They say the 10%-12.5% duties were imposed uniformly on about 60 economies without showing unfair practices.
The Committee for a Responsible Federal Budget projects $900 billion in revenue through 2036, raising debt to 122% of GDP, while Treasury Secretary Scott Bessent says revenue will be virtually unchanged with a de minimis 2026 decline.

History

Historical Context

In 1994, the USTR used Section 301 to impose a 15% tariff on Japanese automobiles, earning about $2.5 billion. That precedent underpins the 2024 forced-labor duties, which groups such as Burlap & Barrel, Collective Horology and the Committee for a Responsible Federal Budget argue exceed Section 301 authority. Courts limiting that power could reshape future U.S. tariff policy.

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Story summary

Burlap & Barrel and Collective Horology sued the United States, alleging the forced-labor tariffs exceed Section 301 authority.
They say the 10%-12.5% duties were imposed uniformly on about 60 economies without showing unfair practices.
The Committee for a Responsible Federal Budget projects $900 billion in revenue through 2036, raising debt to 122% of GDP, while Treasury Secretary Scott Bessent says revenue will be virtually unchanged with a de minimis 2026 decline.

1 / 2