Retailers Urge Court to Vacate Tariffs in Ongoing Litigation

By [ Kathleen McGuigan , Blake Harden ]
09/22/2022

On September 14, the Retail Litigation Center (RLC - RILA's legal arm) led a coalition of associations to file an amicus brief in the In Re Section 301 Cases before the Court of International Trade (CIT). Our brief argues that the Office of the U.S. Trade Representative (USTR) again failed to meet its legal obligation to respond adequately to the overwhelming comments filed in opposition to the Lists 3 and 4 tariffs. As a result, these tariffs should be vacated and monies previously paid should be returned.

The RLC, along with six other associations, released a joint statement emphasizing USTR’s inability to comply with the Administrative Procedure Act.

“The Court bent over backwards to allow USTR to comply with its Administrative Procedure Act obligations. The agency has shown itself incapable of meeting its legal responsibilities – an unsurprising failure since nothing could justify the unprecedented tariffs USTR imposed. Nonetheless, the agency’s inability to provide a bona fide rationale must be met with the appropriate legal action,” the statement said.

“The time has come for the Court of International Trade to impose the normal remedy for unlawful agency action and vacate the tariffs that are taxing American consumers, contributing to the exorbitant rise in inflation and burdening our supply chains. All illegally collected List 3 and List 4 tariff duties should be returned. The Administrative Procedure Act demands it. American businesses and consumers should no longer be forced to pay higher prices on products because of tariffs that USTR cannot reasonably justify.”

The importance of standing up for retail and consumer views on this issue is reflected in the strength of the press coverage surrounding this brief:

Inside U.S. Trade: Importers say USTR’s ‘failure’ to justify 301 tariffs should lead to removal
Politico’s Morning Trade: Law Firm Says USTR ‘Flunks’ 301 Tariff Defense
Law 360: Importers Lambast USTR’s ‘Immaterial’ China Tariff Remand

Retailers, led by the RLC and RILA, will continue to press our position until the tariffs are removed. All eyes will be on the CIT as we await the court’s ruling. We hope our efforts persuade the Court to vacate the tariffs and relieve retailers and American consumers from paying these unjustifiable taxes.