Amazon Joins Section 301 Litigation, Calls Tariffs Unconstitutional

Amazon threw its hefty weight into the Section 301 litigation inundating the Court of International Trade, alleging in a complaint that the lists 3 and 4A tariffs are unlawful under the 1974 Trade Act, violate Administrative Procedure Act rules against sloppy rulemakings, and are unconstitutional because only Congress, not the executive branch, has the power to levy taxes. Amazon reported 2020 revenue of $386.1 billion and is believed now to be the second-largest Section 301 plaintiff by revenue behind Walmart, which sued the government March 8. Walmart reported $559.2 billion in revenue for the fiscal year ended Jan. 31. Both companies are the relatively few among the roughly 6,500 importer plaintiffs to challenge the tariffs on constitutionality grounds. Crowell & Moring is representing Amazon. Walmart’s attorneys are from Hogan Lovells. Both law firms have representatives that sit on the 15-member plaintiffs’ steering committee formed in late March to help manage the massive litigation.