In a 2-1 decision on May 7, 2026, a three-judge U.S. Court of International Trade (“CIT”) panel struck down the Trump administration’s implementation of Section 122 tariffs (see Update of February 23, 2026).
The 10% tariff on a wide range of imported goods, the panel reasoned, extended beyond President Trump’s power to address any “balance-of-payments” deficit, as provided under the statute. The judges, however, declined to block the Section 122 tariff nationwide, limiting their decision to imported goods of certain plaintiffs appearing before them.
The CIT’s decision covered challenges to Section 122 of the Trade Act of 1974 brought by Democratic party state officials and a coalition of private importers. Two members of the three-judge panel agreed with the plaintiffs’ claims that the Trump administration misused a statutory power meant to deal with a balance-of-payments problem instead of a trade-in-goods deficit.
Senior Judge Timothy Stanceu wrote the dissenting opinion, arguing that any decision is premature because it is based on the plaintiffs’ initial request for a preliminary injunction.