Amazon Joins S. 301 Litigation

Amazon threw its weight into Section 301 litigation inundating the U.S. Court of International Trade, alleging in a complaint Monday that the Lists 3 and 4A tariffs are unlawful under the 1974 Trade Act. It said they violate Administrative Procedure Act rules against sloppy rulemakings and are unconstitutional because only Congress, not the executive branch, can levy taxes. Amazon reported 2020 revenue of $386.1 billion and is believed now to be the second largest Section 301 plaintiff behind Walmart, which sued 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 constitutional grounds. Crowell & Moring is representing Amazon. Walmart’s attorneys are from Hogan Lovells. Both law firms sit on the 15-member plaintiffs’ steering committee formed in March to help manage the litigation.