CIT Strikes Down Section 122 Tariffs: What This Means for Businesses
On the afternoon of May 7, 2026, the U.S. Court of International Trade (CIT) issued a significant decision invalidating the Trump Administration’s 10% global tariff imposed under Section 122 of the Trade Act of 1974. In State of Oregon et al. v. United States and companion cases, the court granted summary judgment for certain importer plaintiffs and permanently enjoined enforcement of the tariffs as unlawful. The Court found that only importers and not states had standing to challenge this action and limited the relief to those importer plaintiffs in Court. This relief, while precedential, does not apply at this time to anyone not in this court case. In order to benefit, it appears that entities will need to file their own case seeking similar relief.
This decision sharply limits presidential authority to impose tariffs under Section 122 – a section of the Trade Act that the President was reliant upon after the U.S. Supreme Court struck down IEEPA tariffs in February 2026.
The Section 122 Tariffs at Issue
The case challenged Proclamation No. 11012, which imposed a 10% ad valorem tariff on most imported goods beginning February 24, 2026.
The administration justified the tariffs under Section 122, which allows temporary import surcharges (up to 15%) to address “fundamental international payments problems,” including “large and serious United States balance-of-payments deficits.”
To support the tariffs, the Proclamation relied on:
- A […]
