Tariff Alert: CIT Invalidates Global Section 122 Tariffs In Major Decision

Overview

On May 7, 2026, the United States Court of International Trade (CIT) issued a significant decision in State of Oregon et al. v. United States and Burlap and Barrel, Inc. et al. v. United States, invalidating the Administration’s February 2026 “emergency” 10% tariffs under Section 122 of the Trade Act of 1974. Clients that have paid Section 122 tariffs should evaluate their options for pursuing a refund of such sums promptly.

The court concluded that the President lacked statutory authority to impose the tariffs because the conditions required by Section 122 were not properly satisfied. It therefore granted summary judgment to certain plaintiffs and enjoined enforcement of the tariffs against them.