Don't Celebrate Yet: Why Importers Can't Bank on Tariff Relief

The U.S. Court of International Trade ruled Thursday that Trump's 10% global tariffs — imposed under Section 122 of the Trade Act of 1974 — are unlawful. Headlines are calling it a win. And in a narrow, technical sense, it is. But if you're an importer breathing a sigh of relief, you may want to hold that breath a little longer.

FEB 2026 Supreme Court strikes down IEEPA tariffs 6–3

FEB–MAR 2026 Trump pivots to Section 122 — 10% global duties imposed

MAY 8, 2026 CIT rules Section 122 tariffs unlawful — applies only to 3 plaintiffs

This is a pattern now. The Supreme Court ruled the IEEPA-based "Liberation Day" tariffs unconstitutional — and within days, the White House simply switched legal vehicles, invoking Section 122 to reimpose a flat 10% duty on virtually all imports. The administration has already made clear it intends to appeal Thursday's ruling, and the administration is expected to request a stay that keeps the tariffs in place during the appeals process. We've seen exactly this movie before with IEEPA: the tariffs stayed in effect for months while courts deliberated.

"We always do it a different way." — President Trump, responding to Thursday's ruling. He means it. Section 301 and Section 232 investigations are already underway.

Crucially, Thursday's injunction applies only to the state of Washington and the two businesses that actually sued — spice importer Burlap & Barrel and toy company Basic Fun!. Every other importer must continue paying the 10% duties unless they file their own lawsuit or a higher court issues a broader injunction. And even if an appeals court eventually rules against the tariffs entirely, Section 122 duties are set to expire on July 24 regardless — giving the administration a clean handoff to new tariffs under different legal authority before any definitive court order could take full effect.

The bottom line for supply chain and finance teams is this: plan for elevated import costs to continue. The administration is actively investigating 16 major trading partners under Section 301 (unfair trade practices) and 60 economies under Section 232 (national security). These are broader, more durable legal authorities than either IEEPA or Section 122 — and they're the next vehicle waiting in the driveway. Whatever the news cycle says about court wins, the structural trajectory of U.S. trade policy is upward pressure on tariffs, not relief.

WHAT IMPORTERS SHOULD PRESUME RIGHT NOW

• The 10% Section 122 tariffs remain in effect for you unless you're a named plaintiff

• An appeal and likely stay means duties continue well past any headline "ruling"

• Section 122 expires July 24 — but new Section 301/232 tariffs may replace them

• Model your landed costs at current or higher rates; don't build budgets around rollbacks

• Each legal loss for the White House has so far produced a faster, different tariff — not a pause

The courts may rule in favor of the importers and consumers but they can't afford to mistake legal process for financial relief. Until a final, universal injunction is actually in force and alternative tariff authorities are exhausted — neither of which is imminent — treat your cost of goods as if tariffs are here to stay. Because structurally, they are. With global trade conditions growing increasingly complex, now is the time to ensure your import operations are protected. Trade lawyers and customs brokers are essential partners for any importer facing today's shifting tariff environment — and the uncertainty isn't going away anytime soon.

If you need guidance on clearing cargo through customs or building a strategy for what's ahead, All Borders Inc is here to help. We'd welcome the opportunity to connect and discuss how we can support your business. Reach out today to schedule a consultation.

Sources: U.S. Court of International Trade ruling, May 7, 2026 · CBS News · NBC News · CBC News · SCOTUSblog