On May 8, 2026, the government’s appeal of the Court of International Trade’s (CIT) decision in State of Oregon v. United States & Burlap & Barrel, Inc. v. United States (Slip Op. 26-47) was docketed at the U.S. Court of Appeals for the Federal Circuit. The litigation concerns the 10 percent “temporary global tariff” imposed under Proclamation No. 11012 and Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132).
The core legal dispute is the interpretation of “balance-of-payments deficits.” The CIT ruled that the government’s reliance on modern trade-deficit and current-account data exceeded the narrow, historically rooted scope of the statute. Conversely, the government argues that persistent external imbalances fall within the intended scope of Section 122 and merit judicial deference. While the Federal Circuit granted a stay pending appeal on June 11, 2026 (applying the Nken v. Holder standard), the merits decision will determine whether Section 122 remains a viable tool for future broad-based tariff authorities.