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After Court Ruling, Section 122 Tariff Takes Effect as Refund Battle Builds

The fate of billions paid under unlawful IEEPA tariffs now rests with the courts or Congress.

Overview

  • A 10% global surcharge under Section 122 began on Feb. 24 for up to 150 days, and President Trump has vowed to raise it to 15% but has not issued the order formalizing that increase.
  • Extending the tariff beyond late July would require congressional approval, and Senate Democrats have signaled they will oppose an extension.
  • The Supreme Court’s decision invalidated IEEPA-based duties and opened refund claims on roughly $160–$175 billion collected, yet the administration says repayment will be litigated despite earlier DOJ assurances that refunds would be paid if ordered.
  • Customs and Border Protection has not finalized a refund mechanism; trade lawyers advise enrolling in CBP’s refund program because payments will be sent to registered accounts and the process could take years.
  • The Section 122 measure exempts certain USMCA-qualifying goods, USTR plans expedited Section 301 actions, de minimis limits remain curtailed, and some experts question Section 122’s legal basis.