UPDATE – May 29, 2025 16:45 EST
Appeals Court Temporarily Reinstates Trump Tariffs
Moments ago, a federal appeals court temporarily reinstated President Donald Trump’s tariffs, which had been invalidated a day earlier by the U.S. Court of International Trade. The lower court ruled that Trump’s tariffs exceeded his authority under the International Emergency Economic Powers Act (IEEPA), following a lawsuit filed by five owner-run businesses. The Trump administration quickly appealed the decision and warned that, without a stay, it would seek emergency relief from the Supreme Court. The appeals court’s brief order places the trade court’s judgment on hold while considering the full motion.
As the question of the legality of IEEPA-imposed tariffs makes its way through the legal system for an answer, we anticipate from statements made by the White House that if they receive an adverse ruling at the Court of Appeals for the Federal Circuit (CAFC), they will appeal to the Supreme Court.
The timetable for final resolution is unclear. We recommend that importers contact their Everglory representative to establish a plan to track and monitor entries filed and paid with IEEPA-related tariffs in the event they are found to have been improperly imposed and collected, and to determine what paths are available to request refunds from CBP.
Tariff Turmoil: CIT Finds IEEPA and Reciprocal Tariffs Unlawful
On May 28, 2025, the U.S. Court of International Trade (CIT) issued a ruling that could significantly reshape the tariff landscape for importers worldwide. The Court found that the International Emergency Economic Powers Act (IEEPA) did not authorize the so-called fentanyl tariffs or reciprocal tariffs imposed by the U.S. administration earlier this year. Currently, IEEPA tariffs remain in place, but if upheld, this ruling could result in broad tariff refunds and a change in how future tariffs are implemented.
Everglory Logistics is monitoring this development closely. Here’s what you need to know now.
What the Court Ruled
- The CIT ruled that IEEPA did not provide the legal authority to impose either the 20–25% fentanyl tariffs or the 10% reciprocal tariff on global imports.
- The ruling affects both V.O.S Selections Inc. v. United States and The State of Oregon v. United States.
- The Court ordered the repeal and permanent injunction of these tariffs, which will take effect once a formal order is issued.
What Happens Next
- The U.S. Government has filed an appeal and is expected to seek a stay, temporarily blocking the repeal while higher courts review the case.
- Until the appeals process concludes, tariffs will still be collected, and HTSUS Chapter 99 provisions remain active.
- The $800 de minimis exemption remains suspended for affected goods until further notice.
What Is Not Affected
This CIT ruling does not apply to:
- Section 232 tariffs (steel, aluminum, autos)
- Section 301 tariffs on Chinese goods
- Ongoing investigations under Section 232, including timber, semiconductors, and pharmaceuticals
What Importers Should Do Now
- No immediate action is required, but importers should monitor entry liquidation dates.
- Protest deadlines (typically 180 days post-liquidation) must be observed to preserve refund rights.
- Post Summary Corrections for this issue are not yet accepted in ACE.
- Affected importers should consider preparing to file formal protests if and when the court’s decision is upheld.
Everglory’s Position
We understand the uncertainty this creates for businesses managing their landed costs and sourcing strategies. Everglory is actively tracking the legal developments and will assist clients in navigating any updates, protest timelines, or policy changes. We recommend maintaining documentation and visibility through ACE reports while this legal process unfolds.
Questions about your shipments, tariff classifications, or liquidation timelines? Our team is here to help you prepare, respond, and stay compliant.
