The Business Leader’s Guide to the Current Tariff Picture: IEEPA Refunds, Limited Ruling on Section 122

Despite headlines and legal proceedings, tariff landscape is largely unchanged, for now

The tariff landscape is changing quickly, but Section 122, Section 232, and Section 301 tariffs remain in effect, and companies must continue to pay them. Following the ruling in the May 7 cases of the State of Washington, Burlap and Barrel, Inc., and Basic Fun, Inc., some lawyers have encouraged their clients to file similar suits, meaning legal uncertainty is likely to continue.

U.S. Customs and Border Patrol’s CAPE refund process continues to move along through Phase 1 despite early reports of malfunctions. In some cases, refunds have been distributed more quickly than expected, but there is still no official timeline for a Phase 2 or expanded refund eligibility.

For CFOs, owners, procurement leaders, and importers, it is critical to understand which tariffs still apply today, refund eligibility and process updates, and what documentation will be needed if the rules shift again.

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Are Section 122 tariffs still in effect?

Section 122 tariffs remain in effect for most importers at 10%. The Court of International Trade recently held that the administration’s use of Section 122 was unlawful, but the ruling did not create broad relief for all importers. Instead, the immediate relief applies to the specific plaintiffs, including the State of Washington and private importers involved in the litigation.

The tariff is scheduled to expire July 24, 2026, absent further action by Congress. Until there is broader court relief, new CBP guidance, or legislative action, importers should continue treating Section 122 as an active cost.

Does the court ruling mean businesses can stop paying Section 122 duties?

For businesses outside the specific relief granted by the court, Section 122 duties should still be paid. The administration has already appealed the decision, which means the legal question remains unresolved. Depending on how the appellate process unfolds, the broader legality of Section 122 could ultimately come down to a Supreme Court decision, similar to the IEEPA ruling.

For now, business leaders should avoid making pricing, sourcing or compliance decisions based on the assumption that Section 122 will be handled similarly to IEEPA.

Are Section 232 and Section 301 tariffs still in place?

Sections 232 and 301 remain prominent parts of the tariff landscape. CBP continues to list active trade remedy programs for Section 232 categories, including metals, autos, and other covered goods, as well as Section 301 trade remedies on certain products from China.

Layered tariff exposure likely still exists outside of any other action on Section 122, and businesses should ensure compliance, analyze the impact and the cost, and consider tariff mitigation strategies.

What is happening with IEEPA tariff refunds?

The IEEPA refund process is in motion. CBP launched Phase 1 of the CAPE process through the ACE Secure Data Portal on April 20, 2026. The system is designed to consolidate eligible IEEPA duty refunds rather than processing every refund entry by entry.

Phase 1 is still limited. It generally applies to certain unliquidated entries and certain entries within 80 days of liquidation. CBP has indicated that more complex scenarios will be addressed in future phases, but there is not yet an official timeline for Phase 2.

What should business leaders do now?

Importers of record should continue maintaining detailed records of entries, duty payments, liquidation status, refund requests, broker communications, and tariff classifications. Non-IOR businesses should document supplier-driven price increases, landed cost changes, contract adjustments, and customer pricing impacts tied to tariff increases.

This documentation can support refund claims, supplier negotiations, customer communications, margin analysis, and future planning if the courts or Congress change the tariff environment again.

Navigating what comes next

Tariff volatility continues to affect cash flow, pricing, supply chain strategy, forecasting, and profitability. In this environment, business leaders need a current view of what is in effect, a practical process for preserving refund opportunities, and a clear record of how tariff costs are flowing through the business.

UHY helps middle-market companies navigate tariff uncertainty with a compliance-first, business-focused approach. If your organization is evaluating tariff exposure, refund opportunities, or landed cost impacts, connect with UHY to assess your current position and prepare for what comes next.

Prepare for What’s Next