Tariff Update: Judge Halts Many Trump Tariffs, But Uncertainty Remains

The tariff landscape has shifted once again. While importers may find cause for cautious optimism, considerable uncertainty persists.

The U.S. Court of International Trade has issued a consolidated opinion holding that the International Emergency Economic Powers Act (IEEPA) does not provide the legal authority to impose either the reciprocal or fentanyl-related tariffs.

Consequently, the Court has ordered that the executive orders establishing these tariffs be vacated and permanently enjoined. This decision directs U.S. Customs and Border Protection (CBP) to cease the collection of the affected tariffs.

The tariffs invalidated by the ruling include those announced via executive order on April 2, which imposed a 10% baseline duty on all imports and up to 50% on imports from countries with significant trade deficits, such as China. The Court concluded that the President exceeded the scope of authority granted under IEEPA. It is important to note that tariffs on automobiles, steel, and aluminum remain in effect, as they were implemented under a separate statutory framework.

A permanent injunction has been issued, prohibiting enforcement or collection of the tariffs unless the decision is stayed or overturned on appeal. The Trump administration has already filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit. Keep in mind the administration will pursue all avenues to maintain the tariffs, as this remains a very fluid situation with multiple factors to consider.

In the interim, legal experts anticipate that CBP may continue to collect the tariffs until further guidance is issued. It is not yet clear whether refunds will be issued or whether they will occur automatically. Importers are strongly advised to monitor the liquidation of entries subject to these tariffs and to file protests where appropriate in order to preserve their rights to potential refunds.