24 States Sue Over Section 122 Tariffs:
What Importers Need to Know (And What They Don’t Need to Do)
Published: March 5, 2026 | By Simple Forwarding
Another day, another tariff lawsuit. And just like the IEEPA saga before it, this one will run its course through the courts long before it puts a single dollar back in your pocket. Here’s what’s happening – and more importantly, what it means for your importing operation right now.
What Just Happened
Twenty-four states filed suit against the Trump administration on Thursday, targeting the 10% global tariffs recently imposed under Section 122 of the Trade Act of 1974 – a statute, by the way, that has never been invoked by any president before this one. The Trump administration has since signaled it could push that rate to 15%, the statutory ceiling under Section 122.
The lawsuit lands at the U.S. Court of International Trade and argues that the tariffs violate the Constitution’s separation of powers. The states want the court to rule the tariffs illegal, and to order refunds for any costs incurred while the tariffs were in effect.
Sound familiar? It should.
This Is the IEEPA Playbook, Round Two
If you’ve been following the IEEPA story, you already know how this works. The Supreme Court ruled 6-3 last month that the Trump administration lacked the authority to impose tariffs under IEEPA. A CIT judge followed up this week, ruling that businesses that paid those tariffs are entitled to refunds. A federal appeals court declined to delay that ruling. The refund machinery is now turning – slowly – but it’s turning.
The Section 122 litigation is structurally similar: a legal challenge to presidential tariff authority, a request for refunds if successful, and a long road ahead through the courts before any of that materializes.
There’s one important distinction, though. Legal analysts are already noting that the administration has a stronger hand with Section 122 than it did with IEEPA. Georgetown’s Peter Harrell wrote this week that courts will likely give the president substantially more deference under Section 122 than they did on the IEEPA tariffs. The authority under Section 122 is narrower but arguably cleaner, it explicitly authorizes a temporary surcharge to address “large and serious United States balance-of-payments deficits,” which is precisely the argument the White House is making.
So while the IEEPA refund picture is brightening, Section 122 is far less certain. This lawsuit may win. It may not. What it will definitely do is take time.
What You Actually Need to Do Right Now
Nothing. There is no action required of importers at this stage. No enrollment. No filing. No application. If the litigation succeeds and refunds become available, there will be a process — just as there is now with IEEPA. You’ll hear about it. We’ll make sure of that.
The Bigger Point
Here’s what I keep coming back to whenever another tariff headline drops: obstacles are not blockages.
A lawsuit is an obstacle. A new tariff authority is an obstacle. A 15% surcharge is an obstacle. None of these are reasons to stop importing, stop planning, or stop moving product.
Your competitors are watching the news and sitting on their hands. Some of them are waiting for “clarity” that isn’t coming anytime soon. Clarity in international trade is a myth. The landscape has always shifted – Section 301 tariffs, COVID-era disruptions, IEEPA, now Section 122. What separates thriving importers from struggling ones isn’t the absence of obstacles. It’s the decision to move through them anyway.
So keep importing. Keep your supply chain moving. Engage with a freight forwarder who knows this landscape, who can help you navigate entry strategies, stay current on duty rates, and position your business for whatever comes next.
If refunds come from this litigation, great. That’s money back in your pocket you didn’t have to fight for. But if the courts ultimately side with the administration on Section 122, you still shipped your product, stocked your shelves, and made sales your competitor didn’t make because they were waiting for a resolution that never came.
Tariffs are a cost of doing business right now. Price accordingly. Source strategically. Keep moving.
Key Takeaways
- 24 states filed suit at the U.S. Court of International Trade challenging Section 122 global tariffs of 10–15%.
- The legal argument mirrors the IEEPA challenge — presidential overreach — but the administration likely has stronger legal footing under Section 122.
- If successful, the suit could result in tariff refunds, the same way IEEPA refunds are now unfolding.
- The timeline is long. This will run through the courts for months, potentially years.
- No action is required of importers today. If and when a refund process opens, we will walk you through it.
- In the meantime: keep importing, keep your supply chain reliable, and work with a freight forwarder who can help you make smart decisions in a volatile trade environment.
Simple Forwarding specializes in customs brokerage and freight forwarding for importers navigating complex, fast-moving trade landscapes. Have questions about how current tariff developments affect your shipments? Contact us.
