Court of International Trade Ruling: U.S. President Lacked Authority to Impose IEEPA Tariffs

Trump Administration Files Appeal

On May 28, 2025, the Court of International Trade (CIT) ruled that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to instill tariffs (known as the “fentanyl” and “reciprocal” tariffs imposed in February and April, respectively) was unauthorized.

The CIT issued the decision following two hearings and legal challenges to the Trump administration’s IEEPA tariffs. The ruling applies not just to the plaintiffs in both cases, but to all importers subject to the IEEPA duties (but not other tariffs such as Section 232 or Section 301 tariffs).

• However, the U.S. government filed an appeal immediately, and requested the CIT to issue a ‘stay’ in the execution of the judgement. If the CIT grants this request, IEEPA duty collection will continue uninterrupted until the appeals process is completed. Trade attorney Michael Roll estimates the appeal may take another one to two years.
• Although the CIT’s decision orders the U.S. government to take necessary actions within ten days to cease tariff collections, importers should anticipate the requirement to pay IEEPA duties upon entry to continue for the foreseeable future. This could change, pending the CIT’s decision on the government’s request for a ‘stay.’
• Another important aspect of the CIT decision for importers to note is that it did not include any requirement for the U.S. government to issue refunds on IEEPA duties already incurred and paid.

Plaintiffs in the two CIT IEEPA tariff cases have until June 18, 2025 to respond to the government’s appeal.

A.N. Deringer, Inc. will continue to closely monitor the CIT’s and federal courts actions regarding the IEEPA tariffs and will update our customers and stakeholders accordingly.

SOURCES: Roll & Harris, LLP, Wall Street Journal

Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.