Labor Day typically signals the end of the summer season in the United States, but a recent decision by the U.S. Court of Appeals for the Federal Circuit ("CAFC") has also signaled a potential end to the Trump tariff season as well. The CAFC decision, issued on August 29, 2025, just before the Labor Day weekend, found tariff actions implemented by the President under the International Emergency Economic Powers Act ("IEEPA") to be unlawful. The subject IEEPA tariffs include two sets of actions – (1) the "Trafficking" tariffs targeting imports from Canada, Mexico, and China in response to the declared national emergency related to opioid trafficking, and (2) the "Reciprocal" tariffs imposed on imports from all countries to address the declared national emergency related to trade imbalances (collectively referred to as the "IEEPA tariff actions").1
The CAFC decision affirmed a prior ruling issued on May 28, 2025 by the Court of International Trade ("CIT") finding that President Trump exceeded his authority under the IEEPA in implementing the IEEPA tariffs. In reaching its decision, the CAFC compared language under IEEPA that does not specifically provide the President with authority to implement tariffs to language in other trade statutes (e.g., Trade Expansion Act of 1962, Trade Act of 1974, Trading with the Enemy Act (TWEA)) that has in the past explicitly provided Presidents with certain limited tariff authorities.
Importantly, although the CIT originally found the IEEPA tariff actions to be unlawful, the CIT's nationwide enjoinment of the tariff actions was paused while the case was pending appeal, meaning that CBP has continued to collect tariffs under these actions. The CAFC decision vacated the CIT's nationwide injunction of the IEEPA tariff actions. Additionally, the CAFC has remanded back to the CIT the issues of (1) whether a nationwide injunction is lawful and (2) whether relief may only be granted to importers that are a party to the case. In the meantime, the IEEPA tariff actions will remain in place at least until October 14, 2025, pursuant to the CAFC's temporary stay of its decision.
For importers, this decision does not impact the requirement to pay duties under the IEEPA tariff actions, at least for now. On September 3, 2025, the government submitted a petition to the Supreme Court requesting an expedited review of the CAFC decision and pressing for oral arguments to be heard in the first week of November. If the government ultimately loses and the injunction is enforced, it is possible that importers may be eligible for refunds in the future; however, detailed records of each duty payment will be required to pursue them. Importers should track liquidation dates of entries subject to IEEPA tariffs and file protests with U.S. Customs and Border Protection within 180 days of liquidation if they seek to preserve their rights to potential tariff refunds.
The legal foundation for the IEEPA tariff actions is now weaker than ever, but the collection of tariffs under these actions is unlikely to cease anytime soon. Importers must continue to pay applicable customs duties, maintain detailed records, and stay alert for updates. The CIT and, most likely, the Supreme Court will play critical roles in the next phase of this legal process.
Footnote
1 Specifically, the CAFC decision invalidates the tariffs implemented under the following five executive orders: 14193, 14194, 14195, 14257, and 14266.
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