Appeals Court Halts Tariff Repeal After CIT Strikes Down IEEPA Tariffs

Trade Update • May 30, 2025

sweeping decision by the U.S. Court of International Trade (CIT) on May 28 declared a series of tariffs imposed under former President Donald Trump’s executive orders unlawful, dealing a major blow to the use of the International Emergency Economic Powers Act (IEEPA) as a legal basis for broad trade actions. The CIT’s ruling invalidated a 10% blanket tariff on most imports, as well as targeted duties on goods from China, Canada, and Mexico linked to efforts to combat fentanyl trafficking.

However, within 24 hours, the legal landscape shifted.

On May 29, the U.S. Court of Appeals for the Federal Circuit issued an emergency stay, temporarily halting the CIT’s order vacating the tariffs while the appellate court reviews the federal government’s emergency motion for a longer-term stay. In its filing, the government argued that lifting the tariffs immediately would “hamstring” the United States’ ability to conduct foreign policy and address transnational threats.

Read the Appeal’s Court Emergency Stay Motion (PDF)

Summary of Key Developments:

• CIT Ruling (May 28): The CIT concluded that the IEEPA does not authorize the executive branch to impose tariffs as a tool of trade policy. The court vacated all relevant executive orders, including those imposing reciprocal tariffs and measures targeting fentanyl-related trade.

• Appeals Court Response (May 29): The Federal Circuit stayed the CIT’s ruling, leaving the contested tariffs in place temporarily. The court has ordered an expedited briefing schedule: responses from the plaintiffs are due by June 5, with the government’s reply due by June 9.

• Jurisdictional Uncertainty: Parallel litigation in a federal district court has raised further questions about which court ultimately holds jurisdiction over IEEPA-related trade actions. The district court granted a preliminary injunction for a limited group of plaintiffs and delayed its own order for 14 days to allow for appeal.

• Tariff Status: Importers must continue to pay the IEEPA-related tariffs for now. The stay means the CIT’s order will not take effect unless the appeals court denies the government’s motion or a higher court intervenes.

Implications for Importers and Customs Brokers:

• No Immediate Refunds: Until the legal issues are resolved, importers cannot amend entries or seek refunds for IEEPA tariffs. Should the court eventually strike down the tariffs permanently, retroactive refunds may be available—but only for entries that are still open or timely protested.

• Next Steps: Importers are advised to track all entries subject to IEEPA duties, monitor liquidation dates, and prepare to file protests within 180 days of liquidation if necessary. Companies should also anticipate delays in any future refund process—likely extending into 2026 or beyond.

As this high-stakes legal battle unfolds, its outcome could reshape the limits of executive authority in trade enforcement. Final resolution may rest with the U.S. Supreme Court.

For more details on the CIT’s ruling, see: Slip Op. 25-66 (PDF)

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