Section 301 does
not Allow Broad Tariff on Forced Labor Issue
[ABS News Service/09.10.2026]
A three-judge
panel at the Court of International Trade has asked for additional briefing in
the lead challenge to the Administration’s Section 301 forced-labor duties,
narrowing the dispute into threshold and merits questions that could determine
both whether the action survives and how broadly any relief would apply.
The case is In re
Section 301 Forced Labor Cases, No. 26-cv-03555-3JP. In an October 2 order, the
CIT directed the parties to file supplemental briefs by October 16 following
September 30 oral argument before Judges Jennifer Choe-Groves, Timothy Reif and
Lisa Wang.
The court’s
questions fall into four main categories.
First, the panel
asked the parties to address the US Trade Representative’s Office’s statutory authority
under Section 301. The core issue is whether USTR may use that statute to
respond to foreign governments’ alleged failures to adopt or enforce
forced-labor import prohibitions. The challengers argue that Section 301 does
not authorize this kind of broad duty program; the government argues that the foreign
policies at issue are unreasonable and burden or restrict US commerce.
Economic
Development
Second, the court
asked about Section 301’s economic-development language. That question appears
directed at whether USTR properly accounted for statutory limits or
considerations involving the development level of the targeted countries. The
issue matters because plaintiffs argue USTR treated disparate economies too
uniformly despite differences in legal regimes, enforcement capacity and trade exposure.
Third, the panel
focused on standing. DOJ has argued that the sample plaintiffs import from only
some covered economies and therefore cannot challenge duties tied to countries
with no direct connection to their supply chains. Plaintiffs contend the case
presents common legal defects in a single agency action and should not be
broken country by country. The court also asked whether the standing of state
plaintiffs and other parties may be considered in deciding the full reach of
the case.
Fourth, the court
asked about remedy. If the panel finds USTR exceeded its authority or failed to
support its determinations, it must decide whether relief would be broad,
limited to particular plaintiffs, limited to particular countries, or returned
to USTR for further explanation. That question could prove as important as the
merits because it would determine whether the ruling affects the full program
or only a narrower set of entries.
Impact
The practical
stakes are immediate for importers sourcing from covered economies. A broad ruling
against USTR could open the door to refunds, protest strategies or
reliquidation claims for affected entries. A narrower ruling could leave the
duties in place for countries not tied to the named plaintiffs, limiting relief
to particular importers or supply chains. A remand could preserve collection while
forcing USTR to supply more detailed country-specific findings.
The case also
matters beyond the forced-labor duties. If CIT accepts USTR’s theory, Section
301 could remain a flexible vehicle for replacing or supplementing broader
tariff authorities. If the court rejects it, the ruling could constrain the
administration’s ability to use countrywide trade practices – rather than
product-specific conduct or bilateral market-access barriers – as the basis for
across-the-board import duties.