CIT Strikes Down 122

The U.S. Court of International Trade has ruled that President Trump’s 10% Section 122 tariff is unlawful. The court invalidated the proclamation, ordered refunds, with interest, for the plaintiffs with standing, and directed the government to implement the injunction within 5 days. 

Key points on the injunction: 

• The court did not issue a universal injunction; the permanent injunction applies only to the named importer plaintiffs (including the State of Washington). 

• The government must stop applying Section 122 tariffs to those plaintiffs within 5 days and must refund Section 122 duties they paid with interest. 

• The court noted refunds can be delayed even after tariffs are held unlawful, supporting the need for injunctive relief. 

The government is expected to appeal, and the tariff ruling will likely be stayed during the appeal, so importers should plan to keep paying the Section 122 tariff for now.  

Allyn International is actively supporting the trade community in understanding what their next logical step should be, whether it’s to preserver refunds via protest, seek an injunction or wait for further developments.  

If you have questions about tariffs or would like to explore strategies to reduce their impact on your business operations, contact Allyn today for a consultation at sales@allynintl.com.