Court to Hear Challenge on Tariff Authority September 30
Importers face potential policy shifts as a legal suit tests the administration’s use of Section 301 tariffs.
Updated on Sept. 25, 2026 in International Trade
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The Court of International Trade will hear a legal challenge on September 30 regarding the administration’s implementation of Section 301 tariffs on more than 60 countries. The case, brought by the Liberty Justice Center, questions the legal basis for these measures which took effect in July.
Why it matters
The outcome will determine the scope of executive authority to apply trade barriers after the Supreme Court previously limited emergency powers. Businesses relying on imported goods from affected nations must monitor the court's stance on tariff legitimacy, which could lead to sudden regulatory changes.
The administration applied tariffs ranging from 10% to 12.5% across more than 60 countries in July, alongside specific increases to 37.5% for Brazilian imports and 50% for select Canadian goods. These figures follow the expiration of Section 122 tariffs.
The players
Liberty Justice Center
A public interest law firm that litigates constitutional and administrative law cases.
Alan Wolff
A trade attorney and former official who drafted Section 301 of the 1974 Trade Act.
Carla Hills
A former U.S. Trade Representative and veteran international trade lawyer.
Warren Maruyama
A former top government trade lawyer specializing in international trade litigation.
The details
The current trade strategy relies on a June report concerning forced labor to justify broad tariff applications under Section 301 of the 1974 Trade Act. The Liberty Justice Center argues the administration lacks the authority for these broad measures, a claim supported by an amicus brief from three former top trade lawyers. If the court rules against the administration, officials are expected to seek alternative legal authorities for existing trade barriers.
Timeline
1974: Section 301 of the Trade Act was drafted.
February 2026: The Supreme Court ruled against prior emergency tariff powers.
June 2026: The USTR published a report on forced labor trade policies.
July 2026: The administration implemented Section 301 tariffs on 60 countries.
September 30, 2026: The Court of International Trade hearing takes place.
Market Landscape
This litigation follows the Supreme Court's February 2026 decision curtailing the use of emergency powers for trade enforcement. It forces a direct confrontation over the boundaries of Section 301 of the 1974 Trade Act as a tool for independent tariff implementation.
Operators should review their supply chains for exposure to the 37.5% tariff on Brazilian goods or the 50% duty on Canadian items. Consult with trade counsel to prepare for potential tariff reversals or shifts in authority following the court's upcoming hearing.
The takeaway
The court's upcoming decision could effectively reset the baseline for trade compliance and cost structures. Keep a close watch on the outcome of the September 30 hearing, as it will determine whether these specific tariffs remain in effect or require a strategic pivot by the administration.
Further reading
For broader context on current border measures and legal developments, see International Trade.
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