Guidance Following Court Ruling on 10% Global Tariffs

The U.S. Court of International Trade (CIT) has ruled that the Trump administration’s temporary 10% global tariff program, implemented earlier this year under Section 122 of the Trade Act of 1974, was not authorized by law.

In a 2-1 decision issued May 7, the court found that the administration exceeded the authority granted under Section 122 when it imposed the temporary import surcharge through Presidential Proclamation 11012. The ruling centered on whether the administration’s justification — including trade deficits and international investment imbalances — met the legal definition of a “balance-of-payments deficit” under the statute. The court concluded that it did not.

The Ruling is Significant, But Its Immediate Impact is Limited

At this time, the court’s injunction applies only to three plaintiffs involved in the case:

  • The State of Washington
  • Burlap and Barrel, Inc.
  • Basic Fun, Inc.

For all other importers nationwide, the 10% section 122 tariff remains in effect and continues to be collected by U.S. Customs and Border Protection (CBP).

The administration is widely expected to appeal the ruling to the U.S. Court of Appeals for the Federal Circuit, with the possibility of further review by the U.S. Supreme Court. As a result, the legal and operational status of these tariffs remains unresolved and could continue evolving for months.

What Importers Should Know Right Now

At this stage, there are no immediate actions recommended for most importers.

Importers should continue:

  • Paying Section 122 duties as currently required
  • Maintaining complete entry and payment records
  • Monitoring developments through trusted trade and legal advisors

Although questions regarding future refunds are already emerging, it is far too early to expect broad refund availability. Before any large-scale refund process could occur, several steps would still need to happen:

  • The appeals process would need to conclude
  • A final court decision would need to affirm the tariffs were unlawful
  • CBP would need to establish operational procedures for processing claims

It is possible the recent IEEPA tariff refund process managed through CBP’s CAPE system could be used in the future for Section 122 duties, but no such process has been announced to date.

Worldwide Logistics Group Guidance

Worldwide Logistics Group recommends that importers avoid making rapid operational or filing decisions based solely on initial headlines surrounding the ruling. The current decision is narrow in scope, remains subject to appeal, and does not presently eliminate Section 122 duties for most importers.

Our team is actively monitoring:

  • The appellate process
  • Any CBP operational guidance
  • Potential refund procedures
  • Broader implications for tariff strategy and customs compliance

We will continue providing updates as additional legal and operational clarity becomes available.