The US Court of International Trade (CIT) has ruled against former President Donald Trump’s latest 10% global tariffs, dealing a significant blow to his trade policy strategies. The decision, issued on May 7, 2026, found that the tariffs, which were imposed under Section 122 of the Trade Act of 1974, were not legally justified and violated statutory provisions. The ruling marks another setback for Trump’s attempt to navigate around the Supreme Court's earlier decision invalidating his 2025 IEEPA tariffs.
Key Takeaways
The CIT ruled 2-1 that Trump’s February 2026 global tariffs, enacted under Section 122 of the Trade Act of 1974, were unlawful.
The court found that the cited trade deficits did not meet the criteria for action under the statute.
This ruling follows the Supreme Court’s February 2026 decision that invalidated his earlier IEEPA tariffs.
Shipping containers at the Port of Savannah, reflecting the global trade implications of US tariff policies.
Background: Trump’s Trade Policy and the IEEPA Tariffs
In 2025, Trump imposed sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), citing national security concerns. However, these tariffs were struck down by the Supreme Court in February 2026, as the justices ruled that they exceeded the scope of statutory authority granted by IEEPA [Source: Supreme Court Ruling, February 20, 2026].
In response, Trump sought alternative mechanisms and invoked Section 122 of the Trade Act of 1974 in February 2026 to impose new 10% global tariffs. Section 122 permits tariffs for up to 150 days to address “balance of payments deficits” or to prevent currency depreciation. However, small businesses challenged the measure, arguing that the cited trade deficits were insufficient grounds for such tariffs.
The CIT Decision: Legal and Economic Implications
The CIT’s 2-1 ruling sided with small business plaintiffs, stating that Trump’s justification under Section 122 was not credible. The court concluded that the cited trade deficits did not qualify as the type of economic emergency envisioned by the statute.
This decision further complicates the refund process for importers affected by Trump-era tariffs. While the Supreme Court’s February ruling opened the door for refunds through the CAPE system, this latest decision may require additional adjustments to the recovery process [Source: CBP Declaration, March 6, 2026].
What This Means for US Importers
For US importers, this ruling highlights the importance of monitoring legal developments in trade policy. Importers affected by the 10% tariffs could potential be owed refunds, although further guidance is needed from the Court of International Trade [Source: CBP Declaration, March 6, 2026].
Next Steps for Importers
Use tools like the free IEEPA refund calculator to identify affected entries and calculate potential refunds.
Work with your customs broker or use the CAPE portal to submit refund claims before liquidation deadlines.
Monitor updates on tariff rulings and recovery processes through resources like the IEEPA tariff recovery research hub.
Conclusion
The CIT’s decision to strike down Trump’s 10% global tariffs underscores the ongoing legal challenges surrounding US trade policy. Importers should act promptly to recover overpaid duties and stay informed about changes to the CAPE system and other recovery mechanisms.
For more insights, visit our IEEPA tariff recovery research hub or explore the Bring Your Own Broker program for expert guidance.
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Sign Up FreeFrequently Asked Questions
What is an IEEPA tariff refund?
An IEEPA tariff refund is a duty repayment owed to a U.S. importer of record after the Supreme Court ruled in 2026 that tariffs imposed under the International Emergency Economic Powers Act exceeded statutory authority. Refunds cover IEEPA-coded duties paid on entries from 2025 onward.
How do I file an IEEPA tariff refund claim?
Most importers will file through CBP's CAPE (Consolidated Adjustment for Post-Entry) system inside ACE. The basic workflow: pull your ACE ES-003 report, identify IEEPA-coded entries, confirm importer-of-record status, and submit a CAPE claim. TariffClaim's free toolkit at app.tariffclaim.ai automates each step and routes ineligible entries to the correct alternative path.
How much could my company recover?
Recovery depends on entry volume and tariff exposure. CBP estimates $166 billion in IEEPA-related duties across 53 million entry summaries are eligible. Importers can sign up free at app.tariffclaim.ai to estimate their specific exposure from ACE data.
What's the deadline to claim an IEEPA refund?
There is no single deadline — limits depend on liquidation status. Unliquidated entries can be corrected via CAPE or PSC for up to 300 days from entry; liquidated entries can be protested within 180 days; older entries generally require litigation through the Court of International Trade. Importers should preserve their position before each window closes.
Does TariffClaim charge to prepare or file a claim?
No. TariffClaim's CAPE filing toolkit is free for importers, including ACE data analysis, refund estimation, and claim preparation. Sign up at app.tariffclaim.ai. Optional partner services (specialty financing for early monetization, trade-counsel referrals for complex litigation) are available separately.
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Disclaimer: This article is for informational purposes only and does not constitute legal, customs, or financial advice. Consult qualified professionals regarding your specific situation.