The Vision Council (TVC) issued an update regarding the ruling by the US Court of International Trade (CIT) that found the 10% global tariffs imposed under Section 122 of the Trade Act of 1974 to be unlawful, though the tariffs remain in effect for most importers while the case proceeds through the appeals process.

The May 7 decision concluded that the administration exceeded its authority under the Trade Act when implementing the tariffs. However, the court did not issue a nationwide injunction blocking enforcement. As a result, only the 3 plaintiffs involved in the lawsuit are currently exempt from immediate payment obligations.

For all other importers, the 10% surcharge remains in place through its scheduled expiration date of July 24, unless additional court action alters implementation.

There is currently no automatic refund process for duties already paid under the tariffs, TVC shared. Companies are being encouraged to consult legal counsel or customs advisors regarding options such as filing customs protests, participating in litigation, or taking steps to preserve potential refund rights.

The federal government has appealed the ruling and is expected to seek a stay while the appeal moves forward.

Separately, TVC noted that the Section 122 tariffs could potentially be replaced later this summer by new tariffs stemming from ongoing Section 301 investigations, regardless of the appeal’s outcome.

TVC encourages members to remain compliant with current tariff requirements, maintain records of duties paid, and review refund preservation strategies with advisors as developments continue.