Two Minutes in Trade - Another Global Tariffs Case at the CIT
Oct 2, 2026 · 3 min · 4 segments
Global tariffs face another CIT challenge. For more information, listen to today's Two Minutes in Trade.
Oct 2, 2026 · 3 min · 4 segments
Global tariffs face another CIT challenge. For more information, listen to today's Two Minutes in Trade.
Now, you may recall that the US Court of International Trade previously struck down the administration's global tariffs that were imposed under the International Emergency Economic Powers Act, or IEEPA.
That case ultimately reached the Supreme Court, which overturned the tariffs and ordered refunds in February of this year.
That same day, the administration announced new tariffs for one hundred and fifty days under Section One Twenty-Two of the Trade Act of nineteen seventy-four.
Then on July twenty-third, immediately after the Section One Twenty-Two tariffs expired, the administration imposed tariffs on nearly ninety countries under Section Three Oh One.
This time, USTR argued that countries without an effective ban on forced labor imports were placing a material burden on US commerce.
Tariffs were set at twelve point five percent for countries without a specific legal ban and ten percent for countries deemed not to adequately enforce an existing ban.
The challengers argued that USTR had failed to establish the required connection between these countries' forced labor policies and a material burden on US commerce, particularly on a country-by-country basis.
They also called the tariffs, quote, "arbitrary and capricious," end quote, under the Administrative Procedures Act and characterized Section Three Oh One as a pretext for continuing the global tariffs that had just expired.
After several hours of argument, the government suggested sending the case back to USTR without vacating the tariffs, allowing the agency to further address the court's questions.
The challengers strongly objected, arguing that such a move could delay an appeal while the government continues collecting tariffs.
So once again, the future of the administration's global tariffs rests with the court.
Now, you may recall that the US Court of International Trade previously struck down the administration's global tariffs that were imposed under the International Emergency Economic Powers Act, or IEEPA.
That case ultimately reached the Supreme Court, which overturned the tariffs and ordered refunds in February of this year.
That same day, the administration announced new tariffs for one hundred and fifty days under Section One Twenty-Two of the Trade Act of nineteen seventy-four.
Then on July twenty-third, immediately after the Section One Twenty-Two tariffs expired, the administration imposed tariffs on nearly ninety countries under Section Three Oh One.
This time, USTR argued that countries without an effective ban on forced labor imports were placing a material burden on US commerce.
Tariffs were set at twelve point five percent for countries without a specific legal ban and ten percent for countries deemed not to adequately enforce an existing ban.
The challengers argued that USTR had failed to establish the required connection between these countries' forced labor policies and a material burden on US commerce, particularly on a country-by-country basis.
They also called the tariffs, quote, "arbitrary and capricious," end quote, under the Administrative Procedures Act and characterized Section Three Oh One as a pretext for continuing the global tariffs that had just expired.
After several hours of argument, the government suggested sending the case back to USTR without vacating the tariffs, allowing the agency to further address the court's questions.
The challengers strongly objected, arguing that such a move could delay an appeal while the government continues collecting tariffs.
So once again, the future of the administration's global tariffs rests with the court.
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