Section 122 Tariff Remains in Place Following Appeals Court Ruling

The U.S. Court of Appeals for the Federal Circuit has granted the federal government’s motion for a stay pending appeal in the litigation challenging the global 10 percent tariff imposed under Section 122 of the Trade Act of 1974

The Section 122 tariff took effect Feb. 24, 2026. In a May 7 split decision the Court of International Trade ruled that this tariff is unlawful. The Department of Justice appealed that decision to the CAFC, which has now stayed the effect of the decision during the appellate proceedings.

However, the stay will have little practical impact. The CIT’s decision only enjoined the collection of the Section 122 tariff as to three importers. As a result, this tariff has continued to be collected on entries from all other importers, which will remain the case during the appellate proceedings that are likely to extend past the scheduled expiration of the tariff on July 24.

Further, the CAFC opined in issuing its stay that the DOJ has shown a likelihood of success on the merits, suggesting that the Section 122 tariff is more likely than not to be upheld on appeal.

For more information, please contact attorney Luke Mathers at (212) 549-0160 or via email. You can also contact us at messages@strtrade.com or via your usual STR contact.