Overview
- The U.S. Court of International Trade, which ruled 2–1 on Thursday, said the 1974 law known as Section 122 does not let a president use a blanket tariff to fix trade or current‑account deficits.
- The administration filed an appeal Friday to the U.S. Court of Appeals for the Federal Circuit, a step that could lead to further review by the Supreme Court.
- Relief is limited for now, with the court ordering refunds within five days for the plaintiffs only: Washington state, spice importer Burlap & Barrel, and toy maker Basic Fun!.
- The 10% levy remains in effect for other importers until July 24 unless Congress acts, and industry‑specific tariffs on items like steel, aluminum and autos are unaffected.
- Section 122 allows temporary surcharges up to 15% for about five months during a serious balance‑of‑payments crisis, but judges found the administration’s reliance on a $1.2 trillion goods gap and a roughly 4% current‑account shortfall did not meet that standard, fueling more lawsuits and refund claims as agencies also pursue new Section 301 and forced‑labor probes.