The situation remains fluid following the decision by the U.S. Court of International Trade, which ruled that the global tariffs imposed under Section 122 of the Trade Act of 1974 were not authorized by law. In essence, the court found that the administration could not use this temporary provision, normally tied to serious balance-of-payments issues, as the legal basis for imposing a general tariff on most imports.
For now, the practical scope of the decision appears to be limited to the parties involved in the litigation, rather than an automatic cancellation applicable to all importers. That said, the decision clearly weakens the legal foundation of the Section 122 tariffs and could open the door to further challenges or refund claims, depending on each importer’s specific situation.
It is also very likely that the government will appeal the decision, which means the matter has not yet been definitively resolved. We are therefore continuing to monitor the situation closely for our clients, particularly with respect to possible impacts on duties paid, future entries, available remedies, and any additional guidance from U.S. authorities.