The Court of International Trade (CIT) issued an opinion on Thursday May 7 citing the current Section 122 tariffs imposed by the President after the IEEPA tariffs were ruled to be illegal are also unlawful. While the ruling is limited to particular companies involved in the case, it bodes well for potential rollback and refund of these tariffs should the case follow a similar path as the IEEPA tariffs. The Administration will most likely appeal the CIT ruling and the case will then move to the Federal Court of Appeals, and if upheld, it could move on to the Supreme Court. We have attached the opinion of the court for your reference.

While this situation is developing, there are also hearings on Capitol Hill in regards to the next potential round of tariffs under Section 301. The US Wine Trade Association will be testifying tomorrow as to why tariffs are detrimental to USA wine business and the overall hospitality industry. The current plan of the Trump administration is to roll out the Section 301 tariffs at similar levels to the IEEPA tariffs when the Section 122 tariffs expire on July 24. We will keep you posted on all of these developments.