By: Joseph Spraragen
On September 25, 2025, the U.S. Court of Appeals for the Federal Circuit (CAFC) issued a decision in favor of the Government in the lead China Section 301 case (HMTX Industries LLC v. U.S.) and upheld the legality of the Section 301 Lists 3 and 4A duties that were imposed during the first Trump Administration. Those duties continue to be in effect today.
The three-judge panel that heard the case held that Section 301 empowered the United States Trade Representative (USTR) to make broad modifications to the initial action that it took in imposing the Section 301 List 1 and List 2 tariffs. Plaintiffs had argued that the statute did not provide such authority and that the List 3 and List 4A tariffs were beyond the scope of an allowable modification of the initial action. While the CAFC affirmed the decision of the U.S. Court of International Trade, it relied on a different part of Section 301 to uphold USTR’s promulgation of Lists 3 and 4A.
Plaintiffs can request a rehearing before the entire CAFC within 45 days of the judgment and may pursue a writ of certiorari to the Supreme Court within 90 days. In either event, we anticipate further proceedings in this case so a final decision is likely several months away.
Should you have any questions, please do not hesitate to contact one of our attorneys.
