COURT RULING REDEFINES TRADE LANDSCAPE: WHAT IMPORTERS NEED TO KNOW ABOUT IEEPA TARIFFS

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.

A pivotal legal decision is reshaping U.S. trade policy and creating a window of opportunity for importers. On May 28, the Court of International Trade (CIT) ruled that the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. The court ordered that the executive actions be vacated, directing U.S. Customs and Border Protection (CBP) to stop collecting the affected duties. While the administration has filed an appeal and may seek a stay, this ruling sets the stage for a significant shift in how tariffs can be levied—and what importers should do next.

For now, duties tied to the vacated tariffs may still be collected until a final decision is issued, but importers shouldn’t wait to act. The CIT decision opens the door to potential refunds for duties already paid. However, these refunds will not be automatic. Importers must monitor the liquidation status of affected entries and file formal protests to preserve their rights. Post Summary Corrections remain unavailable for these entries due to system constraints within ACE.

The timeline matters: duties were first collected under these tariffs on February 4, 2025. With liquidation expected around mid-December and a protest deadline extending into June 2026, businesses have time—but not unlimited time—to protect their financial interests.

It’s important to note that this ruling is narrow in scope. It affects only tariffs enacted under IEEPA; other tariffs, such as those under Sections 301, 232, and 122, remain fully intact. As a result, the administration may explore alternate statutory pathways to reinstate similar trade measures.

In the meantime, Future Forwarding advises all importers to closely evaluate their tariff exposure and review their entry data. Staying informed, monitoring liquidation, and preparing to file protests if warranted are critical next steps. If you have questions about how this decision could impact your supply chain or need help assessing your options, our compliance team is here to support you.