Tariff news: Judge orders IEEPA refunds, Trump looks to raise Section 122, states sue

IEEPA refunds

A judge at the Court of International Trade (CIT) has ordered refunds of all IEEPA tariffs.

The ruling comes after the Supreme Court struck down President Trump’s tariffs invoked under the International Emergency Economic Powers Act (IEEPA) last month.

In the case Atmus Filtration Inc. v. United States before the CIT, the judge said Wednesday that all importers whose entries were subject to IEEPA tariffs are entitled to the benefit of the Supreme Court’s decision. This is regardless of whether the company filed a lawsuit challenging the tariffs.

“Accordingly, it is hereby ORDERED that, with respect to any and all unliquidated entries that were entered subject to the IEEPA duties, US Customs and Border Protection is hereby directed to liquidate those entries without regard to the IEEPA duties. Any liquidated entries for which liquidation is not final shall be reliquidated without regard to IEEPA duties,” the judge stated in his opinion.

However, the judge did not issue a timeline for liquidation, which is the final computation of import duties, so that remains up in the air.

Trump tries again with Section 122 global tariff

After the Supreme Court struck down President Trump’s use of IEEPA tariffs, the president invoked Section 122, which allows him to impose duties up to 15% on global imports for a maximum of 150 days. Trump’s Feb. 20 proclamation imposed 10% Section 122 tariffs as of Feb. 24. It’s the first use of the statute by any president.

USMCA-compliant products are exempted from Section 122, as are steel, aluminum, and automobiles, which are covered under Section 232.

US Treasury Secretary Scott Bessent said in an interview with CNBC on Wednesday that the president will be raising the Section 122 tariff to 15% “likely sometime this week.” He also noted he believes the tariff rates will be back to their full amounts within five months.

On Thursday, a coalition of 24 states sued President Trump for his use of Section 122, the New York Times reported. They are challenging Trump’s power to impose the tax, noting residents and businesses are being harmed by the policies. The president’s actions, they argue, threaten to “upend the constitutional order and bring chaos to the global economy,” according to the NY Times article.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held various editorial positions with steel industry publications, associations, and mills since 2007. She joined the SMU team in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania.