U.S. Court Rejects Section 122 Tariffs, Relief Limited to Plaintiffs

The U.S. Court of International Trade has struck down the 10% tariffs imposed under Section 122 of the Trade Act of 1974, ruling that the Trump administration acted unlawfully in applying the duties on imported goods.
According to the American Gem Trade Association, the ruling applies only to the parties directly involved in the case, namely the two companies that filed the lawsuit and the state of Washington. The decision does not currently extend relief to all importers.
The tariffs were introduced after the U.S. Supreme Court invalidated earlier duties imposed under the International Emergency Economic Powers Act (IEEPA). Section 122 tariffs were scheduled to remain in effect for a limited 150-day period ending on 24 July 2026.
AGTA noted that the U.S. government is expected to appeal the decision, leaving the broader outcome uncertain. Legal experts are also evaluating whether additional importers should pursue separate lawsuits to seek similar relief before the tariffs expire.
The development is being closely watched by the gem and jewellery trade, particularly exporters supplying the U.S. market, as the tariff measures have added cost pressures across multiple product categories.