TRADE ALERT – IMPORTS
HEADLINE	Section 301 China Tariff Litigation Update
DATE	June 16, 2026
AGENCY	Trump Administration; Supreme Court of the United States
BACKGROUND	In 2018, the first Trump administration imposed tariffs on certain imports from China under Section 301 of the Trade Act of 1972. This followed a Section 301 investigation between 2017 and 2018 where the U.S. Trade Representative (“USTR”) determined that China had engaged in unreasonable and discriminatory conduct burdening or restricting U.S. intellectual property rights, innovation, or technology development, and imposed 25% tariffs on $50 billion of imports under Lists 1 and 2. The Trump administration later modified these tariffs under the authority granted in Section 307 of the Act, imposing an additional 10% duty (later increased to 25%) on $200 billion worth of imports from China under List 3, and 10% duties (later reduced to 7.5%) on $120 billion worth of imports under List 4A.    These tariffs were challenged at the Court of International Trade (“CIT”). On March 17, 2023, the CIT ultimately upheld the additions of List 3 and 4A as a proper exercise of the USTR’s authority. The CIT determined the addition of the List 3 and 4A tariffs were modifications consistent with the USTR’s authority under Section 307(a)(1)(B) of the Trade Act of 1974.   On September 25, 2025, a three-judge panel at the U.S. Court of Appeals for the Federal Circuit (“CAFC”) upheld the decision of the CIT, sustaining the China Section 301 tariffs in HMTX Industries LLC, et al. v. United States. The CAFC determined that Section 307(a)(1)(C) independently authorized the List 3 and 4A tariffs as modifications, as the new tariffs were related to the initial action and intended to influence China’s behavior, and that the USTR complied with APA procedure.   HMTX Industries filed a petition for a writ of certiorari with the Supreme Court on February 20, 2026, seeking review of the CAFC decision.
DETAILS	The China Section 301 tariff litigation focused on whether the List 3 and 4A tariffs modifying the original Section 301 trade action were issued without statutory authority and in violation of the Administrative Procedure Act’s requirements for notice and comment rulemaking. Section 307 authorizes the president, acting through the USTR, to “modify or terminate” Section 301 tariffs at a later point.   On June 15, 2026, the Supreme Court denied HMTX Industries’ petition without comment, leaving in place the Section 301 tariffs. All appeals have been exhausted, and it is expected that the over 3,500 cases filed before the CIT alleging that the additional tariffs were unlawful will be dismissed.
CITE	In Re Section 301 Cases, 570 F. Supp. 3d 1306 (Ct. Int’l Trade 2022).   HMTX Indus. LLC v. United States, 156 F.4th 1236 (Fed. Cir. 2025).   Docket for 25-1012

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