Federal Circuit Keeps 10% Section 122 Tariff in Force as CBP Collects Duties Pending Appeal
Updated
Updated · breakbulk.com · Jun 2
Federal Circuit Keeps 10% Section 122 Tariff in Force as CBP Collects Duties Pending Appeal
3 articles · Updated · breakbulk.com · Jun 2
A May 12 Federal Circuit stay let Customs and Border Protection keep collecting the 10% global Section 122 tariff from all importers, pausing a May 7 trade court ruling that had found the levy unlawful.
The stay preserves a pay-now, litigate-later system after the Supreme Court wiped out about 60% of 2025 IEEPA tariffs, prompting the administration to shift some tariff revenue to other legal authorities.
Section 122 is set to expire July 24 unless Congress extends it, but the temporary deadline has not eased procurement uncertainty for long-cycle project cargo and industrial equipment buyers.
Section 232 metals tariffs are adding sharper cost pressure: a $250,000 transformer that once faced an $11,250 tariff can now incur $62,500 after April's broader calculation method.
Companies including Fluor, DHL and AAL say customers are delaying sourcing decisions, revising routes and contracts, and modeling total landed costs more aggressively as tariff rules change within days.