Importers are being advised to consider legal action to preserve their rights to potential refunds after a trade court ruling, according to trade lawyers speaking to Supply Chain Dive.

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The May 7 decision by the U.S. Court of International Trade found that President Donald Trump unlawfully imposed a temporary 10% global tariff. However, the ruling applied only to the three plaintiffs who challenged the President’s use of Section 122 of the Trade Act of 1974. While the court did not stop the Trump administration from continuing to collect the tariff nationwide, lawyers noted that importers are free to file lawsuits seeking a similar suspension of payments.

Alexander Schaefer, a partner at Crowell & Moring, explained that the court is effectively signaling that relief is limited to those who sue, meaning importers must file complaints and request an injunction to obtain the same outcome. U.S. Trade Representative Jamieson Greer stated the administration would appeal the ruling, as reported by Reuters, and lawyers expect the administration will ask the appellate court to allow tariff collection to continue during litigation. Schaefer remarked that the administration would certainly ask and might succeed.

Brittney Powell, a partner in the International Trade Practice Group at Fox Rothschild, argued that this possibility should not discourage importers from suing, as outcomes are uncertain. She pointed to the Supreme Court’s rejection of the President’s use of the International Emergency Economic Powers Act for global tariffs, suggesting a favorable precedent. Powell noted that the track record of using such tools for tariffs has shown they are unlawful, making the likelihood of success on the merits high.

Not all lawyers concurred. Devin Sikes, an international trade lawyer and partner at Akin Gump Strauss Hauer & Feld, highlighted a two-year statute of limitations for filing lawsuits, so there is no immediate urgency, especially since the ruling might be overturned on appeal. Sikes stated that if higher courts agree with the Court of International Trade’s conclusion, a refund process similar to that for IEEPA tariffs would likely follow, but that outcome remains far off.

The Section 122 tariffs, imposed by the President in February, are set to expire on July 24 by law. The administration is expected to replace them with Section 301 tariffs, which address unfair trade practices. Despite their temporary nature, a substantial sum will be collected from importers over the 150-day period the tariffs are in effect. Schaefer observed that many importers will be consulting their lawyers and brokers to determine how to preserve rights to recoup duties paid since mid-February, should the ruling hold through the appeals process.

Source: IndexBox Market Intelligence Platform