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Section 122 Tariffs Ruled Illegal

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Section 122 tariffs ruled illegal following a decision by the Court of International Trade (CIT). On May 7, the CIT announced that President Trump’s Section 122 tariffs were unlawful and harmful to businesses. Enacted by the Trump Administration in February 2026, the levy imposed a 10% tax on most US imports. In this case, the CIT found that the administration failed to meet the legal standards required to enforce the tariffs. More specifically, it did not present a “large and serious” balance-of-payments deficit to justify the tariffs. Despite the ruling, broader injunctions are not in place, meaning most importers will still pay duties.

Why Did Trump Impose Section 122 Tariffs?

The Trump Administration originally imposed the levies as a response to the Supreme Court Striking Down the IEEPA tariffs. On February 20, 2026, the Supreme Court ruled that Trump’s International Emergency Powers Act (IEEPA) was illegal. In response to the ruling, the CIT ordered the Customs and Border Protection (CBP) to create the CAPE Portal. Similar to the IEEPA levies, Trump imposed the Section 122 tariffs to address trade imbalances and reduce trade deficits. The Trump Administration is also using the levies as temporary leverage in trade talks for more favorable US deals. Another goal was to bring production back to the US by making it more convenient than importing.

What Can Shippers Expect with Section 122 Tariffs Ruled Illegal?

Despite the ruling, only the plaintiffs in the case will receive refunds, while most importers will still pay duties. It is essential to note that the Section 122 tariffs were set to expire on July 24. A possible effect of the ruling is that all importers may be eligible for refunds, as with IEEPA tariffs. However, this may not be in the near term, and the future decision is uncertain as Trump appeals the ruling. The Trump Administration has already signaled plans to appeal and continue tariffs through other regulations, such as Section 232. Importers must continue to monitor legal developments and understand the impact on their supply chain. With the CIT ruling Section 122 levies unlawful, it may be more beneficial to import goods into the US. Shippers should understand that various regulations can still impact the success of the import.  In addition to staying current with regulations, shippers may benefit from consulting a customs broker such as A1 Worldwide Logistics. A broker is a licensed individuals or corporation that arrange customs clearance for imports on behalf of the importer. In the US, brokers ensure compliance with CBP (Customs and Border Protection) by offering a range of solutions for shippers. Reach us at info@a1wwl.com or 305-425-9456 to learn about our services to ensure US customs releases your shipment.

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