As part of the Sobel Network’s commitment to keeping our partners informed on shifting regulatory tides, we are providing an update regarding recent developments in the ongoing litigation concerning Section 122 tariffs.
On June 11, 2026, the U.S. Court of Appeals for the Federal Circuit issued an order that significantly impacts the current enforcement of these import duties. Below is an overview of the situation from a logistics and compliance standpoint.
Understanding the Judicial Stay
Following a prior ruling from the Court of International Trade—which had granted limited injunctive relief to a small group of specific plaintiffs—the federal government appealed that decision, seeking to stop the suspension of duty collection while the case is fully litigated.
The Federal Circuit has now granted the government’s motion for a “stay pending appeal.” In practical logistics terms, this means that the injunction against collecting these tariffs is paused. Importers should continue to treat Section 122 tariffs as active and applicable to all relevant entries.
Key Takeaways for Logistics Professionals
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Enforcement Continues: The appellate court concluded that the government demonstrated a likelihood of success on the merits of its appeal. Consequently, the collection of these duties remains mandatory for all importers, regardless of the earlier lower-court rulings that applied only to specific parties.
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Addressing “Irreparable Harm”: A central component of the court’s reasoning was the administrative difficulty of recouping duties should the government prevail in its appeal. The court noted that because a refund mechanism (with interest) exists for importers should the final legal outcome favor them, the current stay does not cause irreparable harm to the private sector.
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Regulatory Uncertainty: The court acknowledged that these ongoing legal battles carry “signaling value” regarding national trade policy. For logistics operations, this highlights a period of sustained volatility. The legal debate centers on technical interpretations of legislative history and the authority delegated to the executive branch, both of which remain subject to final judicial determination.
Recommendations for Your Compliance Strategy
The Sobel Network advises all clients to maintain a proactive posture during this period of legal uncertainty:
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Continue Normal Operations: Do not assume that an injunction will apply to your specific import entries unless you have received direct, verified confirmation from your legal counsel regarding your status in active litigation.
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Data Integrity: Ensure that all entry documentation is accurate. If the legal landscape shifts, having clean, well-documented data will be critical for potential refund claims.
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Monitor Expiration: The current tariff authority is scheduled for review/expiration in late July. We are closely monitoring the interplay between these court rulings and the upcoming statutory deadlines.
We remain dedicated to navigating these complex trade environments alongside you. As further updates become available, we will continue to provide the clarity necessary to manage your supply chain effectively.
