Project TERRA

Tariff Equity and Refund Resource for America

Why Do I Still Have to Pay Section 122 Tariffs If the Court Said They Are Illegal?

Last week, on May 7, the U.S. Court of International Trade ruled in a 2-1 opinion that the Section 122 tariffs are illegal. The court granted relief to our clients in Burlap and Barrel, Inc. v. Trump, but it did not issue a universal injunction stopping the government from collecting the tariffs from everyone else until July 24.

So what does that mean?

Right now, the court has said these tariffs are illegal. And if they are illegal, they should be refunded to everyone who paid them. But, just like with the IEEPA tariffs, we have to go through the appeals process before there is final, broad relief.

The government filed its notice of appeal on May 8, and we are now waiting for the Federal Circuit to set the next steps. Once we have a court date or briefing schedule, we will have a better idea of the path forward.

For now:

  • Keep paying what CBP requires.
  • Keep your receipts.
  • Keep good records of all Section 122 tariffs paid.
  • Stay tuned for next steps.

And please keep sending us goodwill and positive energy as we head back to court to win the next round of this tariff fight.

We will share more information as soon as we have it.

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