Federal Appeals Court Allows 10% Section 122 Tariff Collection to Continue for Now
The U.S. Court of Appeals for the Federal Circuit today, June 11, sided with the Trump administration in a ruling which allows the continued collection of the 10% Section 122 tariffs while a legal challenge by a group of U.S. states and small businesses continues.
The Trump administration imposed the Section 122 tariffs in February after the U.S. Supreme Court ruled that the IEEPA tariffs were impermissible. The Section 122 tariffs are set to expire on July 24.
"We find that the federal government has, at least for the purposes of this preliminary stay ruling, plausibly demonstrated irreparable harm associated with difficulties in recouping Section 122 duties if the injunction is left in place,” said the federal appeals court, adding its conclusion that “the plaintiffs will not be substantially injured by the stay.”
“We are persuaded that, if the tariffs are ultimately found unlawful, refunds with interest reduce any harm from the initial payments themselves or any potential refund delays,” the federal appeals court said in the ruling.
Meanwhile, the NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg, P.A., will continue to monitor this situation with the Section 122 tariffs and provide further updates to our customs broker members as soon as available
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