On May 28, 2025, the U.S. Court of International Trade (CIT) issued a significant ruling that blocks the Trump Administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on foreign imports.
The decision impacts a broad range of tariffs, including those targeting fentanyl-related imports from Canada, Mexico, and China, as well as the 10% across-the-board reciprocal tariffs.

Key Points from the Ruling:

  • CIT invalidated the use of IEEPA to impose tariffs on imports, ruling it exceeds the statutory authority granted by Congress.

  • The ruling applies to all U.S. importers, not just the plaintiffs in the case.

  • Affected tariffs include:

    • 25% fentanyl tariffs on imports from Canada and Mexico

    • 20% fentanyl tariffs on imports from China

    • 10% across-the-board reciprocal tariffs on all countries

    • 10% reciprocal tariff currently imposed on China

    • Additional reciprocal tariffs scheduled to take effect July 9 (various countries) and August 10 (China)

What’s Next?

  • The U.S. Government has appealed the CIT’s decision and is also seeking an emergency stay to allow continued tariff collection during the appeals process.

  • If the stay is granted, importers will be required to continue paying the IEEPA tariffs while the legal challenge proceeds.

  • If the stay is not granted, the government will have 10 days to comply with the CIT’s order. However, tariff collection is expected to continue until a decision on the stay request is made.

What Does This Mean for Importers?

  • The appeals process may take years, unless the courts fast-track the case.

  • If the government is allowed to continue collecting tariffs during the appeal, the IEEPA tariffs could remain in place for the foreseeable future.

  • The ruling does not affect other trade measures, including:

    • The de minimis ban on Chinese imports

    • Tariffs imposed under Section 232 (steel/aluminum) and Section 301 (Trump-era tariffs)

Tariff Refunds

  • The CIT’s decision does not require immediate refunds for tariffs already paid.

  • If the government ultimately loses the appeal, a refund process may be developed, but this will only occur after a final legal resolution.

We will continue monitoring this case and provide updates as new developments arise.

Source: LACBFFA