RLC Urges Supreme Court Review of Expanded China Section 301 Tariffs

The Retail Litigation Center (RLC) today led a coalition of trade associations in filing an amicus brief with the U.S. Supreme Court in HMTX Industries LLC v. United States. The filing urges the Court to review the unprecedented expansion of the Section 301 China tariffs by the United States Trade Representative (USTR), which the coalition argues did not follow the procedures required by law.  

In this case, USTR initially imposed tariffs on $50 billion in Chinese imports through the full Section 301 process. It then invoked another section of the Trade Act (Section 307), which allows USTR to “modify” existing actions, to expand those tariffs tenfold—to approximately $500 billion in goods, covering virtually all imports from China. The brief argues that USTR’s actions exceeded its statutory authority and circumvented the rigorous procedural safeguards Congress built into Section 301.

“USTR’s sweeping assertion of such modification authority is unprecedented, and the economic significance of these tariffs is undeniable,” the brief argues.

The amicus highlights the significant economic harm caused by the expanded tariffs, including higher costs for U.S. businesses and consumers, supply chain disruptions, and lost investment and jobs.

"Retailers need predictability to continue to provide consumers with essential goods needed for everyday life," said Monica Welt, president of the Retail Litigation Center. "We are urging the Court to reaffirm that agencies must stay within the bounds Congress set — especially when the stakes for American businesses and consumers are so high. The retail community depends on transparent and predictable trade processes, and this case is vital to ensuring those principles endure." 

The brief was authored by Joseph R. Palmore and Alison H. Hung of Morrison & Foerster.

                                                                                                              ###

Media Contact: press@rila.org

Directed by the chief legal officers of the country's leading retail companies, the Retail Litigation Center (RLC) is the only organization dedicated to advocating for the industry's top priorities in the federal and state judiciary. The RLC also works with leading law firms and retail corporate counsel to develop forward-thinking strategies to combat meritless mass action litigation. Founded by the Retail Industry Leaders Association (RILA) in 2010 as an independent organization, the RLC is a 501(c)(6) membership association open to all retailers and select law firms.