Following the Court of International Trade's May 7, 2026 decision invalidating the 10% global tariff imposed under Section 122 of the Trade Act of 1974, the government moved quickly to appeal. On May 8, 2026, the administration filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit, challenging the trade court's conclusion that the President had failed to identify a qualifying balance-of-payments deficit within the meaning of the statute.
The appeal sets up Federal Circuit review of the divided 2-1 CIT ruling, which had granted relief only to the named importer plaintiffs — Burlap and Barrel, Basic Fun, and the State of Washington as an importer — while leaving all other importers subject to the duties. Alongside its appeal, the government sought a stay of the CIT's judgment and injunction pending appeal. On May 12, 2026, the Federal Circuit consolidated the appeals and issued an administrative stay temporarily pausing the CIT's judgment while it considers the government's stay motion, meaning the Section 122 duties remain in effect for now.
We will continue to monitor the consolidated appeal, including the Federal Circuit's ruling on the stay motion and the merits briefing schedule, and will provide further updates as the litigation proceeds.