U.S. Court of International Trade (CIT) Overturns IEEPA Tariffs, Appeals Court Pauses the Ruling

Now that the U.S. Court of Appeals has paused enforcement of the CIT ruling, CBP is not expected to suspend collection of the IEEPA tariffs until further notice.

The United States Court of International Trade (CIT) has issued a final ruling invalidating a series of IEEPA tariffs imposed by the Trump Administration since January 2025—on the grounds that they were unconstitutional.

During the hearing, a panel of three judges determined that the International Emergency Economic Powers Act (IEEPA), a 1977 law the Administration referenced to support its actions, did not authorize the president to impose such extensive import tariffs on U.S. trade partners. 

The CIT’s decision suspended the current IEEPA tariffs, stopped President Trump from enforcing new tariffs, and ordered the government to issue new orders to stop collecting tariffs under the IEEPA fentanyl and reciprocal tariff actions.

It also reaffirmed that IEEPA was designed to address specific, immediate threats during emergencies—not to serve as a tool for broad, unilateral tariff action.

In response, the Administration filed a notice of appeal within minutes and formally questioned the CIT’s authority to block the emergency tariff measures.

Consequently, just one day later, the U.S. Court of Appeals for the Federal Circuit overturned the CIT’s ruling and temporarily restored the Administration’s authority to enforce the tariffs while the appeal is under review.

The appeals court also directed both parties to submit written arguments on blocking the tariffs, with briefs due early next month.

The case against IEEPA tariffs was brought by a coalition of U.S. importers and industry groups, as well as a separate lawsuit from 12 U.S. state attorneys general led by Oregon and Arizona.

The attorneys general of Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont also joined the lawsuit.

The tariffs affected by the ruling

The CIT’s decision applies to the tariffs imposed under IEEPA in 2025, which include:

• The 25% tariff on Canadian imports, effective February 7, 2025, as per Executive Order 14193 (with an exceptional 10% tariff on energy resources and minerals)
• The 25% tariff on Mexican imports, effective February 7, 2025, as per Executive Order 14194.
• The 30% ad valorem duty rate on imports from China, Hong Kong, and Macau, as follows:
  • A 20% fentanyl-related tariff, effective February 4, 2025, as per Executive Order 14195.
  • An amended 10% reciprocal tariff, effective May 14, 2025, as per Executive Order 14298.
• The 10% reciprocal tariffs on imports from all other countries, effective April 10, 2025, as per the amended Executive Order 14266 (subject to all applicable exceptions outlined in Executive Order 14257).

The tariffs that remain in place include:

• Section 232 tariffs on steel, aluminum, and automobiles.
• Section 301 tariffs on Chinese goods related to unfair trade practices.

What will happen now

For now, the IEEPA tariffs remain in place while the appeal is being reviewed. If your imports are affected by these tariffs, we recommend that you:

• Review your import records to identify the shipments that are impacted.
• Avoid assumptions about refunds or enforcement changes until new guidelines are announced.
• Consult your customs broker to stay updated and discuss risk mitigation strategies.

How Cole International can help

At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.

Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.

Please reach out to one of our trade professionals to learn more about the CIT’s decision and the appeal, and to discuss the potential impact of their rulings on your business.