US Section 122 Tariff Ruling

The narrow Court of International Trade (CIT) ruling against the Trump administration’s 10% Section 122 tariffs does not have any immediate implications for the US effective tariff rate, but it raises the risk that the Treasury will soon be on the hook for another round of tariff refunds and highlights the judicial pushback that the administration is likely to face when it tries to implement expansive Section 301 tariffs after the Section 122 tariffs expire in July.