Overview
- A three-judge panel of the U.S. Court of International Trade ruled 2–1 on Thursday that Section 122 of the 1974 Trade Act did not authorize the 10% across-the-board tariffs, ordering refunds for Washington state, Burlap & Barrel, and Basic Fun! within five days.
- The administration filed an appeal Friday to the U.S. Court of Appeals for the Federal Circuit, and the 10% duties continue for other importers until their scheduled July 24 expiration.
- Section 122 allows temporary surcharges up to 15% for 150 days to address large balance-of-payments crises, and the judges said citing a $1.2 trillion goods trade gap and a current account deficit did not meet that standard.
- Industry-specific tariffs on steel, aluminum, and autos remain in place, and the ruling is expected to spur more refund claims and fresh lawsuits that add costs and uncertainty for importers planning purchases and prices.
- The administration is pursuing separate country-by-country probes under Section 301 and forced-labor investigations that could trigger targeted tariffs even as the legality of broad global duties is fought on appeal.