Overview
- The Court of International Trade, which ruled 2-1 on Thursday, deemed the 10% global tariff “invalid” and ordered the government to stop collecting from Washington state, Burlap & Barrel, and Basic Fun! within five days and to issue refunds.
- Judges said Section 122 of the 1974 Trade Act allows short-term surcharges only for “large and serious” balance-of-payments deficits, not for a $1.2 trillion goods trade gap or a roughly 4% current-account shortfall.
- The tariff took effect February 24 and is scheduled to expire July 24, so most importers must still pay unless they win similar relief in court.
- The Justice Department is expected to appeal to the U.S. Court of Appeals for the Federal Circuit, a step that could prolong uncertainty and slow refund timelines for many businesses.
- Sector-specific duties on goods such as steel, aluminum, and autos remain, and the administration is pursuing Section 301 overcapacity cases and forced-labor probes that could lead to narrower tariffs.