Trade & Tariff Update #28 - Section 122 Tariffs Imposed, EPR Deadlines Live & More

Court of International Trade Strikes Down Section 122 Tariffs 

Last week the Court of International Trade (CIT) issued its decision invalidating the Section 122 tariffs imposed by President Trump after the IEEPA duties were struck down.  Unlike in the IEEPA ruling, the CIT tribunal was split 2-1.  Any potential impact of this split on the inevitable appeal process is unclear, as is the decision’s ultimate fate given that the word “tariff” is explicit in the statute.  What is certain, however, is that this will not be resolved by the July 24, 2026 expiration of the temporary duties.  In addition, the Office of the United States Trade Representative (USTR) continues to work to develop its use of Section 301 to establish a more durable tariff structure by that date.

Section 301 Tariff Review Process   

The USTR also initiated a review process for the Section 301 duties from the first Trump Administration, but is only soliciting comments in support of continuing those duties. While the outcome of the process appears pre-ordained, real opportunity exists to pursue exemptions once the remedies are determined.  It is expected that the investigations collectively will restore the Administration’s tariff authority comparable to the IEEPA regime, with a platform provided to negotiate lower tariffs as part of trade deals and to provide leverage to increase duties against countries that take actions counter to President Trump’s wishes. 

Factoring into this discussion is China, who currently is facing four new investigations plus the review of existing Section 301 duties.  Stakes are raised for the summit between Presidents Trump and Xi at the end of this week as both leaders face heightened political pressure and should be motivated to maintain – if not improve -- the détente achieved under the current trade deal.  While China has been relatively quiet regarding the Iran conflict, it did instruct Chinese companies not to observe the sanctions imposed on Iranian Oil.  At the same time, some express hope that the discussions will relax Chinese import restrictions on American beef along with additional concessions that would benefit the economy, a continuing major concern for voters challenged by spiking fuel. 

President Trump also continues to rattle the saber at the E.U.  The threatened tariff increase to 25% on European automobiles seems aimed at pressuring it to ratify the trade deal negotiated last July.  Both sides are maneuvering to confirm the agreement by its 1-year anniversary. 

New Jobs Added in April 

Last week the Labor Department released April job numbers indicating 115,000 jobs added, nearly double predictions, along with a stable 4.3% unemployment rate.  Although this likely will bolster the Administration’s confidence in its tariff policies, the President’s approval numbers on his handling of the economy continue to be low. 

Extended Producer Responsibility (EPR) Deadlines Live

California has resolved issues with its EPR program and has moved forward with near-term reporting and registration deadlines on May 1 and June 1, 2026.  Oregon, Colorado, Minnesota, Maryland and Washington all have end-of-month deadlines.  Additionally, California has passed an EPR law for textiles with registration beginning on July 1, 2026.  Click here for an overview of these requirements.   

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Disclaimer from Progressive Trade Consulting: PTC is not a law firm, does not practice law, and does not provide legal advice. The Client should consult legal counsel for any legal matters, including trade compliance. The Importer of Record (IOR) is responsible for complying with customs regulations and managing the import process. This includes obtaining required licenses and permits, classifying and valuing goods correctly, declaring goods accurately, paying duties and taxes, following import rules, and maintaining proper records.