The U.S. Court of Appeals for the Federal Circuit on May 12 issued an administrative stay halting enforcement of a lower court ruling that struck down the…
The U.S. Court of Appeals for the Federal Circuit on May 12 issued an administrative stay halting enforcement of a lower court ruling that struck down the administration's 10% across-the-board import surcharge imposed under Section 122 of the Trade Act of 1974 [1]. The stay keeps the tariff operative for importers outside the plaintiff class while the appeal proceeds on the merits [2]. Absent a congressional extension or a court order, the Section 122 authority itself expires July 24 [3].
The underlying ruling came from the U.S. Court of International Trade on May 7, in consolidated proceedings that include *Oregon v. United States* and *Burlap and Barrel v. United States* [1]. The CIT held that the tariff failed to satisfy the statute's threshold condition: a qualifying balance-of-payments deficit [2]. Section 122 authorizes the president to impose an import surcharge of up to 15% for no longer than 150 days, but only when that specific statutory trigger is present [3]. The court found the administration had not met that predicate, rendering the surcharge unlawful on its face [2].
The Federal Circuit's administrative stay is a narrow procedural mechanism. It does not reflect a merits determination and is designed only to preserve the status quo while the appellate panel decides whether to grant a fuller stay pending appeal [1]. For affected importers not covered by the plaintiff-class relief, Customs and Border Protection continues to collect duties under the tariff rate during this period [3]. The stay therefore leaves a two-track compliance environment: covered plaintiffs may claim the benefit of the CIT's injunction, while all others remain subject to collection [2].
The litigation arrives at the Federal Circuit as the administration's broader tariff architecture faces mounting legal pressure. The Supreme Court has already addressed the administration's use of the International Emergency Economic Powers Act as a tariff vehicle, narrowing that avenue [1]. Section 122 had been positioned as a fallback authority, and the CIT's invalidation, now paused, tests whether that fallback can survive appellate review [2]. The merits briefing schedule and any decision on a fuller stay pending appeal will be the next procedural milestones to watch [3].
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**Meta Description:** The Federal Circuit stayed the Court of International Trade's May 7 invalidation of the administration's Section 122 global tariff, keeping it in force while the appeal proceeds.
**Slug:** federal-circuit-stays-section-122-tariff-ruling
**Tags:** Legal News, Appellate Development, Oregon v. United States / Burlap and Barrel v. United States, United States, District of Columbia, Washington, Trade Law, Section 122, Administrative Stay, Tariffs, U.S. Court of Appeals for the Federal Circuit, U.S. Court of International Trade, Department of Justice
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**Metadata:**
– subject: Oregon v. United States & Burlap and Barrel v. United States, Section 122 Tariff Litigation
– subject_type: Appellate Development
– date: 2026-05-12
– jurisdiction: federal
– country: United States
– region: District of Columbia
– city: Washington
– key_people: N/A
– key_organizations: U.S. Court of International Trade, U.S. Court of Appeals for the Federal Circuit, Department of Justice, CBP
– themes: Trade Law, Section 122, Administrative Stay
– significance: The Federal Circuit's stay and forthcoming merits ruling will determine whether Section 122 survives as a viable executive trade authority following IEEPA's curtailment by the Supreme Court.
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**References:**
[1] BDO. (2026, May 8). *U.S. Court of International Trade Invalidates Section 122 Tariffs.* https://www.bdo.com/insights/tax/u-s-court-of-international-trade-invalidates-section-122-tariffs
[2] Gibson Dunn. (2026, May 8). *Section 122 Global Tariffs Invalidated by the Court of International Trade: Ruling and Next Steps.* https://www.gibsondunn.com/section-122-global-tariffs-invalidated-by-the-court-of-international-trade-ruling-and-next-steps/
[3] Holland & Knight. (2026, May 8). *U.S. Court of International Trade Invalidates the Administration's Section 122 Tariffs.* https://www.hklaw.com/en/insights/publications/2026/05/us-court-of-international-trade-invalidates-the-administrations