Appeals Court Affirms CIT Ruling Against IEEPA Tariffs
 

In a 7-4 decision, the Court of Appeals for the Federal Circuit (CAFC) upheld a holding by the Court of International Trade (CIT) against the recent tariffs imposed under the International Emergency Economic Powers Act (IEEPA). They agreed with the CIT that the application of these tariffs exceeded the authority granted to the president under IEEPA and are therefore invalid. Impacted are the worldwide IEEPA Reciprocal tariffs, the IEEPA Fentanyl tariffs (China), and the IEEPA Border tariffs (Canada and Mexico), all of which were included in the appeal.

The CAFC remanded the case back to the CIT for consideration, but paused the remand until October 14, which allows the collection of the tariffs to continue. The White House has already indicated that it believes the tariffs were lawfully implemented and that it will appeal the decision to the Supreme Court. The decision does not affect the multiple tariffs implemented under Section 232 or other tariff actions.

How the Supreme Court may rule is uncertain, as is how refunds would be obtained should they side with the plaintiffs. Importers are advised to track their IEEPA tariff payments and be prepared to take action should the plaintiffs prevail. This case has wide-ranging implications for foreign trade and involves tens of billions of dollars in tariffs already collected.

Best Regards,

Sam McClure, LCB

Director of Compliance & Customs Services