Challenges Raised to 301 Forced Labor Tariffs

Aug. 6, 2026
By: Austin J. Eighan

On August 3, 2026, 25 states challenged President Trump’s latest tariff initiative, arguing that the Administration again exceeded the limits Congress placed on executive tariff authority. The lawsuit targets tariffs that the U.S. Trade Representative (USTR) imposed under Section 301 of the Trade Act of 1974 following an investigation into forced labor in global supply chains. The tariffs apply to imports from approximately 60 countries that account for more than 99% of U.S. imports. 

The states argue that the tariffs bear little connection to the alleged forced labor concerns that prompted the investigation. They characterize the Section 301 inquiry as “rushed” and contend that the agency completed it on a timetable intended to quickly transition from expiring Section 122 tariffs. The complaint further alleges that USTR assigned tariff rates across multiple country groups without demonstrating any meaningful connection between those rates and forced labor conditions, enforcement practices, or specific goods. The states also point to product-based exemptions that they believe conflict with USTR’s stated justification for the tariffs.  

Ultimately, the states assert that the Administration exceeded its statutory authority, failed to engage in reasoned decision-making, and took arbitrary and capricious action by using “forced labor as a pretext to continue its illegal tariff scheme.” Considering previous Section 301 litigation has shown that the Court will give considerable leeway to the Executive Branch when the Administration properly follows procedural rules to implement the tariffs, this may be a tough fight.

The states’ case joins an action brought by spice importer Burlap & Barrel and watch importer Collective Horology. A group of companies including Learning Resources, which was a plaintiff in the Supreme Court IEEPA litigation, has brought a third case. The three actions are not consolidated but will proceed together before the Court of International Trade under a master case. The Administration's answer is currently due by October 2.

If your company would like guidance on Section 301 tariff exposure or structuring compliance measures amid the ongoing legal challenges, please reach out to one of our attorneys at Barnes, Richardson & Colburn.