The Toy Association is sharing several trade developments of interest to toy industry importers and members monitoring U.S. tariff litigation, previously provided to members via email on May 8 and 11:
IEEPA Refunds
Toy Association members have begun receiving tariff refunds deposited into their bank accounts, as of May 11. The initial refunds appear to relate to tariffs that were paid on imports into the U.S. in early March 2025. Companies are encouraged to check the status of their refunds in the CAPE portal for any changes to refund status.
Section 122 Appeal
On May 8, the Trump Administration appealed the May 7 U.S. Court of International Trade ruling that, in a 2-1 decision, had struck down 10% tariffs imposed under Section 122 of the Trade Act of 1974. The appeal is heading to the Court of Appeals for the Federal Circuit. The Section 122 tariffs had been implemented following the Supreme Court’s invalidation of the Administration’s earlier IEEPA-based tariffs.
The CIT concluded that the Section 122 tariffs, which were set to expire on July 24, exceeded the President’s statutory authority. The court found that Section 122 is intended to address “balance of payments deficits,” while the Administration had imposed the tariffs to address broader trade deficits, which the court viewed as a distinct issue.
The court declined to issue a nationwide injunction. Instead, the ruling only blocks U.S. Customs and Border Protection (CBP) from enforcing the Section 122 tariffs on imports where the named plaintiffs were the importers of record, meaning that most U.S. businesses must still pay the 10% tariff.
The Administration is expected to pursue other avenues to enact tariffs, according to The Hill, “including through Section 232 of the Trade Expansion Act of 1962, citing national security purposes, and Sections 201 and 301 of the 1974 Trade Act.”
Class Action Lawsuits
A number of class action lawsuits filed against retailers and brands — including Nike, Nintendo, Costco, FedEx, and more — are accusing the companies of “double recovery,” by collecting IEEPA-related refunds while also passing tariff-related price increases on to consumers.
The Toy Association will continue to monitor developments closely and provide updates as additional information becomes available.