The case was championed by flooring company HMTX Industries, which focused on the so-called List 3 and List 4A tariffs. The plaintiffs argued the U.S. Trade Representative had overstepped its “modification” authority under the Trade Act when it scaled up tariffs beyond the original $50 billion in Chinese imports to cover hundreds of billions of dollars more after China retaliated.  

ACCA lists China as a major source of compressors, motors, control boards, and copper components. Many of these items face additional Section 301 duties of 7.5% or 25%, on top of any base duties or other measures, like Section 232 for steel, aluminum, and copper.  

The latest SCOTUS decision removes the uncertainty about the legality of these tariffs, but it will certainly not lower any rates or provide relief for manufacturers, contractors, and consumers.  

This decision comes after the Supreme Court in February struck down many of Trump’s “Liberation Day” tariffs, which were launched using the International Emergency Economic Powers Act (IEEPA). In response, Trump utilized different avenues to achieve the same results.  

With this latest ruling affirming the usage of Section 301, the administration now finds itself with new tariff leverage using alternatives to IEEPA. Earlier this month, the U.S. Trade Representative’s office floated a 12.5% tariff on imports from countries it says have not done enough to crack down on forced labor, which would include items of Chinese origin.  

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