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Court of International Trade Rules Against Section 122 Tariffs: What Importers Need to Know

  • May 9
  • 2 min read

The U.S. Court of International Trade (CIT) ruled that the Trump Administration unlawfully used Section 122 authority to impose the across-the-board 10% tariffs on nearly all imports.


This decision comes just hours after the Administration also lost its Supreme Court battle regarding tariffs imposed under the International Emergency Economic Powers Act (IEEPA).


The Section 122 tariffs, which were announced as an alternative mechanism following earlier legal setbacks, are currently scheduled to expire on July 24, 2026. However, the CIT’s ruling now places the future of those tariffs — and potential refunds — into question.


What the Court Ordered


The Court instructed U.S. Customs & Border Protection (CBP) to:


  • Immediately stop collecting Section 122 tariffs

  • Refund Section 122 tariffs already paid


At this time, however, those orders apply only to the importer plaintiffs involved in the lawsuit.


For all other importers, the Section 122 tariffs remain active, and CBP is expected to continue collecting them through July 24, 2026, unless additional legal or administrative action changes the current process.


Potential Refund Opportunities


Yesterday’s decision creates a possible pathway for tariff refunds beyond the original plaintiffs. The exact process remains uncertain and will likely depend on future court decisions and appeals.


Several important questions remain unanswered:


  • Will importers need to independently file lawsuits to recover paid tariffs?

  • Will CBP eventually implement a broader refund mechanism similar to the ACE/CAPE refund administration process currently being used for IEEPA tariff refunds?

  • How quickly could refunds be processed if broader relief is granted?


At this stage, importers should continue monitoring developments closely while maintaining detailed records of all Section 122 tariff payments.


What This Means for the Importers


Yesterday's decision creates the opportunity for potential tariff refunds. Whether an importer will need to sue to request a refund, or whether CBP, after appeals are exhausted, will implement a refund system similar to the one it is using to administer IEEPA refunds will be determined.


When more details are available I will send them out.


 
 
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