US tariffs targeting China face a legal challenge, but not the taxes you might think

Trade war’s initial losses and Donald Trump’s latest levies will spark fresh questions about limits of presidential authority, experts say

Reading Time:6 minutes

Published: 1:00am, 9 Feb 2025Updated: 10:36pm, 9 Feb 2025

Donald Trump’s tariffs are being challenged. But not the ones you might think.

As the recently inaugurated US president presses even more aggressive tariffs to address various national issues unrelated to trade, a legal challenge to the taxes he imposed on China in his first term has garnered fresh attention.

Observers say lessons from the case may already be shaping Trump’s tariff strategy, as he invoked emergency powers last week to order new levies on China, prompting Beijing to file a dispute with the World Trade Organization.

They suggest the lawsuit’s outcome, expected later this year, could significantly impact the US executive branch’s ability to order tariffs.

The tariffs at issue were applied to Chinese imports between 2018 and 2019 under Section 301 of the Trade Policy Act of 1974 in response to Beijing’s retaliation against Trump’s initial tariffs on Chinese goods worth US$50 billion.

In September 2020, HMTX Industries, a Connecticut-based global manufacturer of vinyl tiles, filed a lawsuit arguing the US government unlawfully disregarded public comments and failed to assess the economic impact before imposing additional duties – ranging from 7.5 per cent to 25 per cent – on Chinese goods worth US$300 billion.