IEEPA Ruling on Tariffs and Appeal

A federal appeals court has temporarily halted a ruling against former President Donald Trump’s global tariffs as it considers whether to put a longer pause on the decision. The Trump administration has said it will take the case to the U.S. Supreme Court if needed.

On Thursday, May 29th, the U.S. Court of Appeals for the Federal Circuit issued a brief order granting the temporary stay. This move puts the lower court’s decision—blocking the tariffs—on hold for now, while the appeals court reviews the government’s request for a more permanent suspension.

On Wednesday, May 28th, the U.S. Court of International Trade (CIT) unanimously ruled that certain tariffs imposed by the Trump administration under the IEEPA (International Emergency Economic Powers Act) are illegal. These include tariffs linked to fentanyl concerns (involving Mexico, Canada, and China) and broad tariffs announced on April 2nd that applied to nearly every country.

In a 49-page decision, the court stated that the IEEPA does not give the President unlimited power to impose tariffs. It also found that the fentanyl-related tariffs do not meet the legal requirement of addressing an “unusual and extraordinary threat.”

 The court did not order the government to refund duties already paid, leaving it unclear whether importers can get refunds through options like protests or post-summary corrections.

This decision does not affect other tariff programs such as those under Section 232 (national security) or Section 301 (unfair trade practices). The impact on other ongoing tariff cases, including Section 301 appeals, is still uncertain.

IFF will continue to keep our customers updated to this fluid situation.