Court Decision and Administrative Stay What Importers Need to Know
On May 7, 2026, the U.S. Court of International Trade (CIT) issued a 2–1 decision finding that the Section 122 tariffs were unlawfully imposed. One judge dissented. The court determined that the factors cited in the Presidential proclamation—such as trade deficits and current account deficits—did not meet the statutory definition of a “balance‑of‑payments” deficit required under Section 122.
Important limitations of the May 7 decision
The CIT did not issue a nationwide or industry‑wide ruling.
Relief applied only to the named importer plaintiffs in the case (including the State of Washington in its capacity as an importer).
New development – May 12, 2026
On May 12, the U.S. Court of Appeals for the Federal Circuit granted an administrative stay of the CIT’s judgment.
The stay temporarily pauses the effect of the decision while the court considers the government’s request for a stay pending appeal.
The stay is procedural and does not address the merits of the case.
What this means for importers right now
There are no changes to enforcement, duty collection, or entry filing procedures.
Section 122 tariffs remain applicable unless and until CBP issues official guidance.
Importers should not assume refunds, relief, or changes in duty treatment at this time.
Importer‑specific considerations
These developments may raise questions regarding importer‑specific rights or options, including potential litigation considerations.
Any evaluation of legal remedies or claim‑preservation strategies is highly fact‑specific and should be discussed directly with legal counsel.
As a customs broker, our role is limited to filing entries in accordance with current CBP requirements and guidance.
This matter remains at an early stage of litigation and may continue to evolve. We are monitoring developments and will provide updates if and when actionable CBP guidance becomes available. Please contact us with operational or entry‑filing questions and consult your legal advisor regarding legal strategy or rights.
For assistance and additional questions, please reach out to Janel Group's Compliance Team or a Janel Group Representative.
Director of Trade Compliance
Senior Compliance Analyst