May 29th, 2025
The Courts Rule the IEEPA Tariffs are Unlawful: What Does This Mean for You?
On May 28, 2025, the U.S. Court of International Trade (CIT) issued a significant ruling in the consolidated cases V.O.S. Selections Inc. et al. v. Donald J. Trump (Court No. 25-66.pdf) and The State of Oregon et al. v. Donald J. Trump (Court No. 25-77). A three-judge panel unanimously ruled that the IEEPA tariffs imposed starting in February and later in April (i.e., the "fentanyl" and the "reciprocal" tariffs) of this year are illegal.
The CIT further concluded that the IEEPA tariffs should be declared unlawful as to all importers, not just the Plaintiffs in order to ensure uniformity.
For the immediate term, tariffs are likely to continue to be collected, and it is not yet clear whether or when refunds will be issued. Further information will be provided after the order is issued. We will continue to monitor this situation and provide updates when available.
Please contact us if you have any questions about this or any other trade matter.
The CIT further concluded that the IEEPA tariffs should be declared unlawful as to all importers, not just the Plaintiffs in order to ensure uniformity.
- Impact on Tariffs: The ruling specifically targeted the "Liberation Day" tariffs, which were imposed starting February 4, 2025. These included a 10% tariff on a wide range of imports from countries like China, Canada, and Mexico, as well as additional duties related to fentanyl concerns. The court's decision does not affect other tariffs imposed under different statutory authorities, such as those under Section 232 for national security reasons or Section 301 for unfair trade practices.
- Immediate Enforcement: While the court has issued a permanent injunction, the government has 60 days to file an appeal and may seek a stay of the order pending that appeal. Therefore, Customs and Border Protection (CBP) may continue to collect the challenged tariffs during this period.
- Refunds and Protests: It remains unclear whether refunds will be issued automatically or if importers will need to take action. Importers should monitor the liquidation of entries on which tariffs were paid and consider filing protests to preserve their rights to potential refunds. Post Summary Corrections may not be available due to system constraints, so timely filing is crucial.
For the immediate term, tariffs are likely to continue to be collected, and it is not yet clear whether or when refunds will be issued. Further information will be provided after the order is issued. We will continue to monitor this situation and provide updates when available.
Please contact us if you have any questions about this or any other trade matter.
