Trade Cases

CIT Receives Thousands of Lawsuits Over Section 301 Tariffs
Written by Sandy Williams
September 27, 2020
The Trump administration has received more than 3,300 lawsuits from manufacturers alleging that the most recent rounds of tariffs against China under Section 301 of the Trade Act of 1974 were unlawful and arbitrary.
The first two rounds of tariffs covered $50 billion worth of Chinese goods. The third was implemented on $200 billion of imports and the fourth on $120 billion. The products in question include everything from household goods and clothing to machinery and auto parts. Plaintiffs allege that the United States Trade Representative exceeded its authority in imposing the third and fourth rounds and are seeking refunds for tariffs already paid.
A number of major automakers have filed lawsuits with the Court of International Trade including Tesla, Volvo, Ford and Mercedes Benz. Tesla called the tariffs “arbitrary, capricious, and an abuse of discretion.”
Mercedes Benz accused the administration of prosecuting “an unprecedented, unbounded, and unlimited trade war. Mercedes added that U.S. law “did not confer authority on defendants to litigate a vast trade war for however long, and by whatever means, they choose.”
The National Law Review states, “Section 301 of the Trade Act of 1974 authorizes the USTR to impose duties to combat certain ‘unreasonable’ or ‘discriminatory’ trade acts by a foreign government.” Tariffs are paid by the U.S. importers of those goods.
The National Review added, “The plaintiffs argue that the Section 301 law was not intended as a tool to engage in an ‘open-ended trade war,’as opposed to an initial response to China’s intellectual property violations.”
Although the lawsuits are consider a long shot at best, the sheer number of complaints are expected to garner serious attention from the CIT. Besides the automakers, major companies include HMTX Industries, Coca-Cola, Home Depot and Target.
“I would hope the court realizes that law firms and companies don’t sue the government on a whim. That while the payout could be significant, they would not do this without having looked at it carefully and done the due diligence to make sure the case is legitimate,” a lawyer told Inside U.S. Trade. “You don’t pull the trigger on suing the government lightly. I think the number of cases and the well-regarded law firms — that should have some impact on any judge’s views of the validity of the claims. I don’t think they can ignore that.”

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

Steel groups voice different takes on US-EU trade deal
US and European steel trade groups were at odds over their reaction to the recent trade deal President Trump brokered with the EU.

Here’s what’s up next in the big coated steel trade case
Attorneys representing domestic petitioners and foreign respondent companies have been busy filing case briefings and making rebuttals as the corrosion-resistant steel unfair trade investigations begin to wind down.

Price: Which countries get a ‘zonk’ in Trump’s primetime ‘Let’s Make a (Trade) Deal’ show?
As the president’s August 1 tariff deadline approaches, the “Let’s Make a Deal” game show returns to primetime (the Monty Hall version, of course). As the administration begins rolling out trade deals, we are starting to see what’s behind door number one and who is getting a “zonk.”

Trump says Canada deal might not happen: Report
President Trump said a negotiated deal with Canada might not occur, and all existing tariffs, along with those set to take effect soon, will stay in place, according to media reports.

Steel trade groups applaud Trump’s S232 tariffs
Five trade organizations involved with North American steel have praised President Trump’s Section 232 tariffs on steel for helping the domestic industry.