On May 7, 2026, the US Court of International Trade (CIT) ruled against the US Government’s 10% global tariff, implemented under Section 122 of the Trade Act of 1974. This ruling applies only to two companies and the State of Washington as an importer. The plaintiffs in the case claimed that the global 10% tariff was implemented as a means of side-stepping the landmark Supreme Court decision that overturned the original International Emergency Economic Powers Act (IEEPA) tariffs, and the CIT agreed in a 2-1 decision.
This is the first step on what could potentially be a long road towards broadly overturning Section 122 tariffs ahead of the already predetermined end date for the trade action. At present, no new information or instructions have been provided by Customs and Border Protection. No information regarding refunds has been made available, even for those affected by the lawsuit, and currently, these tariffs remain in effect and are being collected.
It is important to note that the implementation of Section 122 was already a short-term measure in response to the Supreme Court ruling. Issued on February 24, 2026, and it may only remain in effect for 150 days, with a potential end date of July 24, 2026, at which point it will require an extension by Congress. This recent ruling could affect this existing due date.
This is a developing story, and we will continue to monitor and to provide updates when they become available.
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