On May 7, 2026, the U.S. Court of International Trade ruled that Proclamation 11012, which imposed a temporary 10% import surcharge under Section 122 of the Trade Act of 1974, was invalid. The decision marks a significant development for U.S. importers, manufacturers, and supply chain stakeholders who have absorbed elevated duty costs since the surcharge took effect. While the ruling offers a meaningful avenue for relief, the government has filed an appeal, leaving the ultimate scope of importer exposure and refund eligibility unresolved.
The timing of Proclamation 11012 is notable. The surcharge was issued the same day the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act in Learning Resources, Inc. v. Trump. Read together, these decisions reflect a broader pattern of judicial pushback against expansive assertions of executive authority over trade policy. For businesses, this evolving legal landscape underscores that tariff measures once treated as fixed cost inputs may now be subject to meaningful challenge and revision.
Pending the appeal, importers face a period of continued uncertainty. The Court of International Trade's ruling does not automatically suspend collection, nor does it guarantee that surcharges already paid will be refunded. The outcome will depend on the appellate court's analysis and any further procedural directions regarding remedy and retroactivity. In the interim, Customs and Border Protection may continue to assess duties consistent with existing guidance, and importers should not assume that liability has ended.
Given these conditions, proactive steps are essential. Companies should preserve all entry documentation, duty payment records, and supporting correspondence related to imports subject to the 10% surcharge. Importers should also evaluate whether to file protective administrative protests or refund claims within applicable deadlines to safeguard their position should the appeal affirm the lower court. A careful review of supply chain agreements, customer pass-through provisions, and accrual practices may further help businesses manage financial and contractual exposure while the matter remains pending.
This article provides general information and does not constitute legal advice. Companies affected by Section 122 tariff issues should consult qualified counsel for guidance tailored to their specific circumstances.