IEEPA Refunds

U.S. Court of International Trade Invalidates Section 122 Tariffs

Yesterday, the U.S. Court of International Trade (“CIT”) held that the President unlawfully invoked Section 122 of the Trade Act of 1974 to impose the current 10% global tariffs. The CIT concluded that the statutory prerequisites for imposing tariffs under Section 122 — namely, the existence of “large and serious United States balance-of-payments deficits” — were not satisfied. In reaching its decision, the court rejected the administration’s argument that general U.S. trade and current account deficits constituted the type of “balance-of-payments” condition contemplated by Congress under the statute.

Scope and Implications of the Decision

Although the injunction issued by the CIT was limited to the named plaintiffs — Burlap & Barrel, Basic Fun!, and the State of Washington — the ruling raises broader questions concerning the legality of Section 122 duties currently being collected from other importers. The decision may also create a pathway for additional importers to pursue litigation seeking refunds of Section 122 duties already paid.

Potential implications of the ruling include:

Increased litigation by importers seeking broader injunctive relief;
Additional refund claims for previously paid Section 122 duties;
Heightened scrutiny of the executive branch’s use of emergency or temporary tariff authorities; and
Greater uncertainty regarding the continued enforceability of Section 122 tariff collections.

Appeals and Expected Government Response

The administration has already filed notices of appeal, ensuring that the tariffs are likely to remain in place for most importers while the case proceeds before the U.S. Court of Appeals for the Federal Circuit and potentially the U.S. Supreme Court. Trade practitioners expect additional legal challenges from companies seeking broader relief and possible tariff refunds, particularly because the temporary Section 122 tariffs are currently scheduled to expire in July 2026 unless extended by Congress.

In parallel, the administration is widely expected to explore alternative trade authorities to preserve broader tariff measures, including:

Potential actions under Section 301 of the Trade Act of 1974;
Additional investigations targeting specific countries or sectors;
Expanded use of national security-based tariff authorities;
New administrative measures designed to offset the loss of Section 122 tariffs; and
Legislative or regulatory efforts aimed at preserving existing tariff frameworks.

Recommended Actions for Importers

In light of the CIT’s decision, importers should consider taking proactive measures to preserve potential refund opportunities and protect their legal rights. Recommended actions may include:

Monitoring the liquidation status of affected entries;
Evaluating whether to commence an action before the U.S. Court of International Trade (1581(i));
Filing timely customs protests, where appropriate;
Preserving all documentation relating to Section 122 duty payments and affected entries;
Reviewing customs entry data to identify potentially recoverable duties;
Coordinating with customs brokers and trade counsel regarding litigation strategy;
Assessing financial statement and reserve implications associated with potential duty refunds;
Monitoring developments in the pending appeals and related litigation; and
Preparing for the possibility of replacement tariffs or alternative trade remedies in the future.

Braumiller Law Group, PLLC will continue to monitor developments and provide updates as additional actions are announced.

If you have additional questions regarding tariff exposure, product classifications, or supply chain impacts, please contact Adrienne Braumiller and Adrienne@braumillerlaw.com.

Section 232 and Reciprocal Tariff Developments

In April 2026, the United States expanded its trade enforcement measures against the European Union (EU) through a combination of Section 232 tariffs and threatened increases tied to ongoing trade negotiations. These actions follow continued concerns regarding trade imbalances, industrial market access, and non-tariff barriers affecting U.S. exports.

Section 232 Tariffs on Steel, Aluminum, and Copper

On April 2, 2026, President Trump issued a proclamation strengthening Section 232 tariffs on imported steel, aluminum, copper, and derivative products, citing national security concerns under the Trade Expansion Act of 1962. The updated measures include:

A 25% ad valorem tariff on certain imported steel, aluminum, copper, and derivative products.
Expanded authority allowing additional derivative products to be added to the tariff list on a rolling basis.
Removal of many existing product exclusion processes.
Limited reduced-rate treatment for certain United Kingdom-origin products during ongoing trade negotiations.
Temporary reduced-duty treatment for select industrial and electrical grid equipment through 2027.

Potential Increase in EU Tariff Rates

The United States has also warned that additional tariff increases may be imposed on EU-origin goods if the European Union does not comply with obligations under the July 2025 U.S.-EU trade framework agreement. Current developments include:

Potential increases on certain EU imports, particularly automobiles, from 15% to 25%.
A July 4, 2026, deadline for the EU to implement agreed reforms.
Continued U.S. concerns regarding:
- Delayed elimination of industrial tariffs,
- Limited duty-free access for certain U.S. agricultural products, and
- Ongoing non-tariff barriers impacting U.S. exporters.

Broader U.S. Tariff Policy Context

These developments continue to create uncertainty for importers, manufacturers, and global supply chains engaged in U.S.-EU trade. Companies importing EU-origin products should continue monitoring:

Section 232 product scope expansions,
Potential tariff increases tied to the July 2026 deadline,
Ongoing Section 301 investigations, and
Future Customs and Border Protection (CBP) implementation guidance.