On May 7, 2026, the U.S. Court of International Trade ruled 2-1 that President Trump’s use of Section 122 tariffs to impose a global 10% tariff was unlawful. The court found that the administration improperly relied on trade and current account deficits as justification for the tariffs, even though Section 122 was intended to address balance-of-payments deficits under the statute.
The majority, however, did not block the Section 122 tariffs on a nationwide basis. The court declined to issue a universal injunction, stating that the “potential for increased costs to one plaintiff is not an appropriate basis for the imposition of a universal injunction.” Instead, the majority issued a permanent injunction applicable only to the named importer plaintiffs, including the State of Washington in its capacity as an importer. The judgment specifically directs that the government stop imposing Section 122 tariffs on the named plaintiffs within five days and orders that all Section 122 tariffs paid by those plaintiffs be refunded with interest.
At this time, Section 122 tariffs remain in effect for all other importers, and duty collection will continue to be required. CBP has also not released any further guidance. We will continue to monitor developments and provide updates as additional information becomes available.