What the Trump administration's latest tariff blow means for businesses

Key Points:

• A U.S. trade court ruled that the Trump administration's 10% global tariff under Section 122 of the Trade Act of 1974 was unlawful, siding with 24 states and businesses challenging the tariff's legality.
• The ruling impacts a narrow subset of plaintiffs and does not immediately change the overall U.S. tariff rate, which remains at an average effective rate of 7.2%, with Section 122 tariffs set to expire at the end of July.
• Most businesses still owe the 10% tariff, but the decision may encourage more companies to sue for refunds, and importers are advised to track duties paid in anticipation of possible reimbursement.
• The Trump administration is likely to focus on Section 301 of the Trade Act for imposing tariffs moving forward, though the recent ruling signals potential legal challenges to these tariffs as well.
• The government owes an estimated $175 billion in tariff refunds due to this and previous rulings, and Customs and Border Protection has opened a portal for importers to submit refund claims.