Section 122 Tariffs: Court Decision and Appeal Status Update

On May 7, 2026, the U.S. Court of International Trade (CIT) issued a decision in State of Oregon et al. v. United States and Burlap and Barrel, Inc. et al. v. United States finding that the Administration exceeded its authority under Section 122 of the Trade Act of 1974 related to the February 2026 tariff action.

On May 12, the U.S. Government filed an appeal of the decision, and as a result, the legal status and enforceability of the Section 122 tariffs remain subject to ongoing judicial review. Additional court proceedings, including potential requests for a stay or other interim relief, may further affect how the ruling is applied.

At this time, there is no change to existing operational or duty payment requirements for impacted shipments. Importers should continue to comply with all applicable requirements while the appellate process progresses. Importers may wish to assess historical Section 122 duty exposure, recognizing that any potential refund or relief outcomes remain uncertain and contingent on the outcome of the appeal.

Maersk Trade & Customs Consulting Can Support

Maersk’s Trade & Customs Consulting team can support importers with duty exposure analysis, entry level reporting and reconciliation, refund opportunity assessments, protest strategy coordination, tariff impact reviews, and broader trade compliance advisory support. For additional guidance or support evaluating potential exposure and recovery opportunities, please contact your Maersk Trade & Customs Consulting representative.

This communication is provided for general informational purposes only and does not constitute legal advice. Importers should consult legal counsel regarding litigation strategy, protests, or specific legal rights related to tariff recovery actions.

Anything you need, we’re here to help

Logistics services

We meet customer needs from one end of the supply chain to the other.

Contact us

Our dedicated team of experts are here for you.

Ready to ship?

Look up rates for new shipments and inland tariffs.
Stay informed
Sign up for news and insights
Stay ahead of the curve with valuable supply chain trends sent directly to your inbox

I agree to receive logistics related news and marketing updates by email, phone, messaging services (e.g. WhatsApp) and other digital platforms, including but not limited to social media (e.g., LinkedIn) from A. P. Moller-Maersk and its affiliated companies (see latest company overview). I understand that I can opt out of such Maersk communications at any time by clicking the unsubscribe link. To see how we use your personal data, please read our Privacy Notification.

By completing this form, you confirm that you agree to the use of your personal data by Maersk as described in our Privacy Notification.

Thank you for signing up
You have now signed up for newsletters. You will shortly receive an email which will explain how to set your newsletter preferences and unsubscribe.
Subscribed
You can unsubscribe anytime.