U.S. Trade Court Hears Challenges to Trump’s Broad Section 301 ‘Forced-Labor’ Tariffs

Overview

• A three-judge panel at the U.S. Court of International Trade heard consolidated arguments on September 30, 2026 about lawsuits by four small businesses and 25 states seeking to block tariffs tied to alleged forced labor.
• Plaintiffs say the administration failed to produce country-specific findings and used Section 301 to recreate the wide tariff powers the Supreme Court limited earlier this year, while the Justice Department defends the government’s investigations and legal authority.
• Judges pressed the government on the depth of its evidence and whether the trade law’s definitions of unfair practices were followed, with questions focusing on a single broad report rather than detailed, country-by-country analyses.
• The tariffs, announced in late July and set at roughly 10–12.5% for products from about 60 reported economies (covering 86 countries), include countries such as Brazil and can overlap with other duties to raise some rates as high as 37.5%.
• The court’s upcoming written decision could force repayment of collected duties as happened after earlier IEEPA-based tariffs and will shape how future administrations use statutes like Section 301 to impose wide trade measures.