Choosing a customs broker is an important decision for any business or individual importing goods into the United States. Your broker can help prepare your customs entry, classify your goods, calculate duties, manage documentation, and communicate with U.S. Customs...
Shippers may soon face higher costs as the Panama Canal fees continue to rise. Over the last few months, various scenarios have driven transit fees higher. Major carrier companies have begun raising their Panama Canal Surcharge from $100 per TEU to $130 and nearly...
Lawsuits against the Trump administration’s new levies are continuing, with 25 states suing Trump's tariffs. On August 3, a 25-state coalition sued President Trump over recent tariffs imposed on over 60 countries. Similarly, two businesses also filed a lawsuit against...
Tariffs remain an issue in the US, with President Trump’s new tariffs facing lawsuits. Following the expiration of Trump’s Section 122 tariffs, the Office of the US Trade Representative (USTR) imposed new tariffs under Section 301 of the Trade Act of 1974. Starting...
The legal fight over tariffs remains, as the CIT denies a Section 122 tariff stay. President Trump originally imposed the Section 122 tariffs as a response to the Supreme Court striking down the IEEPA tariffs. On May 7, the Court of International Trade (CIT) ruled that the Section 122 tariffs were unlawful. Following the CIT’s striking down the Trump Administration’s Section 122 levies, the government responded by requesting a motion to stay enforcement of its judgment. The CIT rejected the motion on May 20, 2026. With the imposition and elimination of tariffs over the last year, the denial of stays could significantly impact international Shipping.
A primary reason for CIT’s rejection was the CIT finding that the Trump Administration exceeded its authority under Section 122. Further, the court believed that the levies did not satisfy the statute’s “large and serious” balance-of-payments requirement. The CIT also determined that forcing the plaintiff to pay unlawful duties would result in substantial financial injury. Despite the ruling, the government also sought a stay pending appeal to a Court of Appeals in the Federal Circuit. The Federal Circuit’s stay request is separate and will not conflict with the CIT’s May 20 decision. As the Federal Circuit processes the motion, it could take months to reach a final decision.
Despite the CIT’s denial of the stay, the future of the Section 122 tariffs remains uncertain. It is essential to note that only the plaintiffs in the case will be reimbursed by the ruling. Importers will still have to pay the 10% Section 122 levies for the time being. Similar to the IEEPA levies, the ruling could make all importers liable for refunds in the future. When importing, shippers must plan their supply chain strategies around higher costs. This can mean sourcing their goods from a location where production is cheaper or manufacturing their goods in the US.
Although the Section 122 tariff ruling will not affect importers in the short term, shippers should be current with updates. Failure to understand the regulations governing cargo imports can lead to disruptions that negatively impact supply chains. While this can mean reading news articles, importers could also prepare by speaking to a 3PL (third-party logistics) provider. A 3PL is a company that handles parts of a client’s supply chain on their behalf. They do this by offering services including customs clearance, domestic shipping, freight forwarding, and consulting to guide importers. Contact A1 Worldwide Logistics at info@a1wwl.com or 305-425-9456 to learn about our 3PL solutions for shipping your cargo internationally.
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