The U.S. Court of International Trade (CIT) has ruled that the Section 122 tariffs were unlawfully imposed. The court found that the President did not identify qualifying balance‑of‑payments deficits as required under Section 122 of the Trade Act of 1974.
Relief granted under the ruling is limited to the plaintiffs in the case: the State of Washington, Burlap and Barrel, Inc., and Basic Fun, Inc. The Section 122 tariffs will remain in effect for all other importers through July 24, 2026. The U.S. government is expected to appeal the decision.
In light of this ruling, it may be prudent for importers to monitor developments closely for any appeal activity.