The US Court of International Trade has ruled that President Trump lacked the authority to impose broad import tariffs under the International Emergency Economic Powers Act (IEEPA).
The ruling stems from two lawsuits—one by small import businesses and another by a coalition of states—challenging the legality of the tariffs. The court clarified that Section 232 (national security-related tariffs) and Section 301 (retaliatory tariffs, primarily on China) remain in effect. This decision specifically invalidates tariffs imposed under IEEPA.
Importers should note that despite the ruling, duties will continue to be collected at the border for now. A stay order is in place, maintaining the status quo while the government has 60 days from the May 28 ruling to file an appeal. The court’s decision will not take effect unless and until the stay is lifted.
If the ruling is upheld after the appeals process, importers may be eligible for refunds with interest on tariffs paid under the invalidated program.
The decision also raises questions about ongoing trade negotiations, including a UK-US deal. While tariffs on specific goods like steel, aluminum, and cars under Section 232 and 301—governed under different legal authorities—are unaffected, the ruling casts doubt on the legality of the 10 percent blanket tariff on most other imports.
Trade experts view the ruling as a significant check on presidential tariff authority and a potential shift in the legal boundaries of US trade policy. If you have questions on how this ruling might impact your shipments, reach out to your Mohawk Global representative.