US Trade Court Strikes Down Trump's Section 122 Tariffs
The US Court of International Trade invalidated President Trump's 10% Section 122 tariffs.
Why it matters: Importers and trade counsel face immediate impacts on eligibility for tariff relief, and the decision signals new limits on presidential authority to impose trade barriers without congressional approval.
- The 2-1 CIT ruling held Trump exceeded authority under Section 122 of the Trade Act of 1974.
- Relief was limited to named plaintiffs, including small businesses and the state of Washington.
- Tariffs were set to expire July 24, 2026, unless extended by Congress.
- The administration plans to appeal, with potential escalation to the Supreme Court.
The US Court of International Trade (CIT) ruled on May 7, 2026, that President Trump's 10% global tariffs—imposed under Section 122 of the Trade Act of 1974—were unlawful. In a 2-1 decision, Judges Mark Barnett and Claire Kelly found the President exceeded his statutory powers, while Judge Timothy Stanceu dissented. The court's decision comes on the heels of a February 2026 Supreme Court ruling striking down tariffs under the International Emergency Economic Powers Act (IEEPA).
- Relief from the unlawful tariffs is restricted to the named plaintiffs, including small importers like Burlap & Barrel and Basic Fun!, as well as the state of Washington.
- As Jay Foreman, CEO of Basic Fun! said: "This decision is an important win for American companies that rely on global manufacturing to deliver safe and affordable products."
The administration intends to appeal, potentially sending the case to the US Court of Appeals for the Federal Circuit and, eventually, the Supreme Court, according to reports. Tim Brightbill of Wiley Rein noted a 'plan C' is already in progress: Section 301 investigations as a further tariff mechanism.
The Section 122 tariffs, which were introduced after IEEPA tariffs were struck down, were set to expire July 24, 2026 unless Congress acts to extend them. The CIT's decision curbs the executive branch's latitude to impose unilateral trade barriers, with direct effects for importers and legal advisors weighing options in ongoing and future disputes.
By the numbers:
- 10% — Global tariff rate imposed under Section 122
- July 24, 2026 — Scheduled expiration of tariffs unless extended by Congress
- February 2026 — Supreme Court invalidates IEEPA tariffs
Yes, but: Relief applies only to named plaintiffs; most importers remain subject to tariffs absent broader relief.
What's next: The administration is expected to appeal, potentially escalating the case to the Supreme Court.