Tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA) remain in effect despite numerous legal challenges.
As previously reported, the U.S. Court of International Trade (CIT) decided last month that the President does not have "unbounded authority" under IEEPA to impose tariffs. However, the government immediately appealed the decision to the U.S. Court of Appeals for the Federal Circuit (CAFC) and filed a Motion for a Stay of Enforcement of Judgement Pending Appeal.
On June 11, 2025, the CAFC granted the government's motion to stay, replacing the temporary stay granted on May 29, 2025. This means the IEEPA I fentanyl tariffs and reciprocal tariffs imposed on April 2, 2025, will continue to apply.
The CAFC determined that, due to its importance, the appeal will proceed before the entire court, instead of the usual three-judge panel format. The briefing schedule has also been expediated to allow for oral argument on July 31, 2025. Although the federal circuit is not bound by a firm deadline to issue its opinion, this accelerated timeline indicates that the CAFC will most likely issue its opinion by mid-August or early September.
Whichever party loses this appeal may pursue further review before the U.S. Supreme Court. If the federal circuit issues a decision by September, Supreme Court review may be sought in time for consideration during the Court's next session, which begins in early October 2025.
In a related case, the District Court for the District of Columbia (DDC) ruled earlier this month that IEEPA does not authorize President Trump to impose tariffs at all. The judge denied the government's request to transfer the case to the CIT, finding that because IEEPA does not authorize the imposition of tariffs, the CIT lacks exclusive jurisdiction over the case.
The government appealed to the U.S. Court of Appeals for the District of Columbia Circuit (CADC) and filed a motion to stay. On June 3, 2025, the DDC judge granted the government's stay, meaning the IEEPA tariffs remain in effect until a final determination is made.
If ultimately struck down, businesses may become eligible for refunds of IEEPA tariffs already paid. However, entries may not be filed without the IEEPA tariffs or corrected using a post summary correction (PSC) before the matter is resolved. As a reminder, if entries liquidate before a final determination, importers will need to file protests to protect those entries and ensure they remain open.
Braumiller Law Group PLLC will continue to monitor and provide updates on the cases as necessary.
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