In an opinion published on May 7, 2026, the Court of International Trade (CIT) determined that the application of Section 122 of the Trade Act of 1974 did not meet the conditions set out in the statute and issued an injunction against the collection of the tariffs for the importers that filed the suit. The decision was not unanimous, with the majority concluding that the balance‑of‑payments conditions required under the statute were not satisfied.

The injunction is being extended only to the importers Burlap and Barrel, Basic Fun, and the state of Washington. The remaining 23 states involved in the suit were found to lack standing to challenge the duties because they did not directly import goods subject to Section 122 tariffs.

CIT’s opinion can be found here:
https://www.cit.uscourts.gov/sites/cit/files/26-47.pdf