Appeals Court Keeps Section 122 Tariffs In Place (For Now): What Importers Need To Know

On May 7, 2026, the U.S. Court of International Trade (“CIT”) issued a significant decision holding that the Trump Administration’s 10% global tariffs imposed under Section 122 of the Trade Act of 1974 were unlawful. Just days later, on May 12, 2026, the U.S. Court of Appeals for the Federal Circuit stepped in and temporarily stayed that ruling. 

Thus, despite a major legal victory for plaintiff-importers at the CIT, and the hope provided to non-parties seeking similar relief in their own proceedings, Section 122 tariffs remain in effect – for now – while the appeal proceeds.  

Key Takeaways from the Stay 

The stay issued by the Court of Appeals pauses the CIT’s judgment while the Appeals Court considers the government’s motion for a longer stay pending appeal. The original plaintiffs have seven days to respond to the government’s motion, and the Court of Appeals has set an expedited briefing schedule, signaling that further developments should come quickly. 

Since this decision does not adjudicate the merits of the case (i.e., agree or disagree with the CIT’s decision), importers who are not party to the original lawsuit can still plan to file their own lawsuits with the CIT because Section 122 tariffs are unlawful. Additionally, the Appeals Court’s order keeps the collection of the 122 tariffs in place.  

What This Order Means for Importers 

1. Duties Must Still Be Paid

CBP will continue to assess and collect the 10% Section 122 tariffs on entries 

2. The Window for Refunds Is Uncertain 

While the CIT ruling opens the door to refunds, no broad refund mechanism exists yet for Section 122 duties. Any recovery will depend on: 

• • The outcome of the Federal Circuit appeal 
  • Potential Supreme Court review 
  • Whether importers preserve their rights now in their own lawsuits

3. Litigation Strategy Matters 

Since CIT expressly limited relief to named plaintiffs, and since this was based upon statutory construction, importers seeking refunds should take affirmative legal action, rather than waiting for automatic relief or filing protests with CBP. It is still unclear if CBP would accept a protest or would find that it is merely acting in a ministerial capacity, thus, this is not a protestable event. Based upon this limitation language, any relief will likely be based upon the order in which the court cases are filed, and potentially, the entries could liquidate further limit relief.  

4. Expect Continued Volatility 

The Section 122 tariffs were already temporary (scheduled to expire in July 2026 absent extension), but ongoing litigation—combined with possible replacement tariff actions—means continued uncertainty. 

Final Thoughts: Take Action Today 

The May 12 stay underscores a critical reality in today’s tariff landscape: a court victory does not always translate into immediate operational relief. For Section 122 tariffs, importers are once again in a holding pattern – paying duties on a measure already deemed unlawful, while appellate litigation plays out. 

Companies that take proactive steps now, especially to preserve refund rights in their own lawsuits, will be best positioned if the courts ultimately invalidate these tariffs for good. 

Learn More 

• IEEPA Tariff Refunds Likely Not Automatic – Why Importers Need a Refund Strategy 
• CIT Strikes Down Section 122 Tariffs: What This Means for Businesses 
• Tariffs & Trade Deals (live resource)  
• Presidential Powers and Tariffs: A Breakdown of Key Trade Laws  
• Webinar: Navigating Tariff Challenges: Mitigation Tools & Tactics 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.