Overview
- A three-judge panel began hearing consolidated lawsuits on Wednesday testing whether the administration legally used Section 301 to impose broad tariffs tied to alleged forced labor.
- The plaintiffs—25 states led publicly by Oregon and four small businesses—say the government failed to conduct country-specific investigations and used the forced‑labor claim to revive sweeping tariffs struck down earlier under IEEPA.
- The administration says it completed investigations, described the measures as a “moral and economic imperative,” and defended Section 301 as a proper tool after the Supreme Court forced repayment of more than $160 billion in earlier IEEPA duties.
- The contested duties, applied at roughly 10 to 12.5 percent to dozens of trading partners (reports list about 60–86 countries including China, EU members and Brazil), could trigger large refunds if the court finds legal defects.
- A written decision, expected weeks to months after the hearing, will set precedent on presidential trade power, affect import costs for U.S. businesses and determine whether the administration can press a potential second wave of tariffs targeting “excess capacity.”