The U.S. Court of Appeals for the Federal Circuit issued a temporary administrative stay of the U.S. Court of International Trade’s recent ruling that invalidated the Administration’s Section 122 tariff program. The order temporarily pauses both the judgment and the permanent injunction entered by the CIT while the appellate court considers motions for a stay pending appeal.
READ THE FEDERAL CIRCUIT ORDER HERE: FEDERAL CIRCUIT ADMINISTRATIVE STAY ORDER IN SECTION 122 APPEALS
WHAT DOES THE FEDERAL CIRCUIT STAY MEAN FOR SECTION 122 TARIFFS?
The administrative stay temporarily preserves the status quo while the appeal process moves forward. The Federal Circuit stated that the CIT judgment and injunction are stayed “until further notice” while the court reviews the government’s request for a longer-term stay pending appeal. At this stage, the order does not resolve the underlying legal dispute over whether Section 122 of the Trade Act of 1974 supported the February 2026 tariff action. Instead, it pauses the effect of the earlier ruling while appellate review continues.
WHAT HAPPENED TO THE ORIGINAL CIT RULING?
The May 2026 CIT decision concluded that the Administration exceeded the statutory scope of Section 122 when imposing a 10 percent global import surcharge under Proclamation 11012. The court determined that the tariff action relied on trade deficit and current account data that did not align with the balance-of-payments conditions contemplated by Congress under the statute. The CIT ruling also issued a permanent injunction that applied to the named plaintiffs and ordered refunds with interest for duties previously collected under the program.
WHICH CASES WERE INCLUDED IN THE APPEAL?
The Federal Circuit consolidated two related appeals involving the Section 122 tariff litigation. The cases include claims brought by the states of Oregon and Washington, along with importer plaintiffs Burlap & Barrel and Basic Fun. Under the consolidation order, the appeals will proceed under a single briefing schedule and consolidated caption.
WHAT HAPPENS NEXT IN THE SECTION 122 APPEAL PROCESS?
The Federal Circuit directed the plaintiffs to respond to the government’s stay request within seven days of the order. Any government reply must be filed within three days after those responses are served. The appellate court has not yet issued a final decision on whether the stay pending appeal will remain in place throughout the broader litigation process.
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