Walmart Joins Section 301 Litigation, Argues Tariffs are Unconstitutional

Walmart threw its massive weight behind the Section 301 litigation inundating the U.S. Court of International Trade when it joined thousands of other importers March 8 in seeking to get the lists 3 and 4A Chinese tariffs vacated and the duties refunded. The Office of the U.S. Trade Representative overstepped its 1974 Trade Act authority when it waged the retaliatory tariffs against the Chinese and violated the 1946 Administrative Procedure Act by running tariff rulemakings that lacked transparency, the retail giant’s complaint said, mirroring virtually all the 3,500 others filed since the beginning in mid-September. Walmart also joined the roughly two dozen small importers that argue that the list 3 and 4A duties also are “unlawful and unconstitutional” because only Congress has the power of taxation. The tariffs also “were enacted contrary to the Fifth Amendment guarantee of due process of law,” Walmart said. From statements made by President Donald Trump and other officials in his administration, “an additional, if not the sole, reason and purpose for the List 3 additional duties was to collect revenue for the federal general treasury,” the complaint said. “To the extent the List 3 additional duties were revenue collection measures, they were beyond the scope of actions USTR was authorized to take by the Trade Act of 1974 and, therefore, were unlawful.” Hogan Lovells is representing Walmart in the case. USTR didn’t comment.