By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

On March 5, 2026, complaint was filed at the Court of International Trade by twenty-four states challenging implementation of Section 122 and its 10% global tariff.

The complaint puts forth the argument that the balance of payments crisis does not exist, and that the wide range of exemptions and country carve outs are not justified within the statute’s language about exceptions.

The CIT was asked to permanently enjoin the government from implementing the Sec 122 proclamation and to order the government to refund any of the tariffs collected from the states and their “instrumentalities.”

V. Alexander will continue to monitor this situation and issue updates as needed. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.