Federal Circuit: Tariffs on Chinese imports upheld
Section 307(a)(1)(C) of the Trade Act of 1974 authorized the USTR's actions, allowing the agency to modify trade actions.
The U.S. Court of Appeals for the Federal Circuit today upheld the Office of the United States Trade Representative's (USTR) authority to impose tariffs on Chinese imports under Section 307(a)(1)(C) of the Trade Act of 1974. This decision affirms the USTR's actions to modify existing tariffs on Lists 3 and 4A of Chinese products.
The case is: HMTX Industries LLC v. United States, No. 23-1891 (Fed. Cir. September 25, 2025). Read the Federal Circuit’s decision
Summary
From 2017 to 2018, the USTR investigated China's trade practices and imposed 25% duties on $50 billion of imports from China under Section 301 of the Trade Act of 1974. In response to China's retaliatory tariffs, the USTR modified its actions under Section 307, imposing additional duties on Lists 3 and 4A, covering at least $300 billion worth of imports.
The court concluded that Section 307(a)(1)(C) independently authorized the USTR's actions, allowing the agency to modify trade actions when they are deemed "no longer appropriate.” The court rejected the appellants' arguments that USTR exceeded its authority and violated the Administrative Procedure Act (APA). The court also determined that USTR's remand redetermination complied with APA requirements, adequately addressing significant public comments.