Transatlantic Trade Monitor: Facts You Need Now | Updates on the Legal Battle Over Tariffs

IMPORTANT TARIFF UPDATE – (5/29)

The Court of International Trade has issued a joint decision, ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize many of the new tariffs imposed by way of executive order. As a result, on May 28 the Court ordered that the directives imposing these tariffs be vacated and permanently enjoined.

The court has issued a permanent injunction which means the tariffs cannot be collected or enforced unless the ruling is stayed or reversed. The Trump administration has already submitted a notice of appeal to the U.S. Court of Appeals for the Federal Circuit.

The tariffs affected by the ruling include the executive orders from April 2 that imposed a 10% baseline tariffs on all imports and up to 50% tariffs on goods from trade-deficit nations like China. The legal basis used by the court is that the president exceeded authority under the International Emergency Economic Powers Act (IEEPA). Note that tariffs on autos, steel, and aluminum remain, because they were invoked under a different law.

Implications for Logistics Stakeholders

While the global tariffs enacted under the April 2 executive orders have been invalidated and are currently unenforceable, the broader legal process remains in motion. This temporary reprieve presents a critical opportunity for logistics stakeholders to strengthen their operations and mitigate future risk.

The administration’s appeal introduces more ongoing uncertainty, and close monitoring of legal developments is essential. Importers should continue to explore diversified sourcing strategies and tariff-contingent contract structures must continue to be vital components of every supply chain.

Noteworthy is that the ruling represents a notable constraint on executive authority in trade policy and could establish legal precedent for future challenges. Given the complexity of the case, logistics professionals should view this development as both a short-term relief and a strategic opportunity to invest in long-term supply chain resilience.

In the meantime, legal analysts expect that the CBP is likely to continue collecting the tariffs, and it remains unclear when, or if, refunds will be issued. Importers should closely monitor the liquidation of entries where tariffs were paid and be prepared to file protests to preserve refund rights.

UPDATE – (5/30)

There have been several important developments since the Court of International Trade’s (CIT) decision invalidating IEEPA tariffs earlier this week.

Initially, the CIT ruled the IEEPA tariffs unlawful and ordered their revocation within 10 calendar days (by June 7). Soon after, the Trump administration appealed the decision to the Court of Appeals for the Federal Circuit (CAFC).

The Government requested, and was granted, a temporary stay of the CIT order by the CAFC to allow time for full review, possibly by the Supreme Court. And since, a District Court separately ruled that IEEPA does not authorize tariffs, found CIT lacked jurisdiction, and granted a limited injunction for two plaintiff, delaying its own order for 14 days to allow appeal.

Where Tariffs Stand Now:

The IEEPA tariffs remain in effect. The CAFC’s stay pauses enforcement of the CIT’s ruling while longer-term legal review is underway. Importers must continue paying applicable duties. Two courts currently assert jurisdiction over the matter. Final authority remains to be determined through ongoing litigation.

If the executive orders are ultimately revoked, importers may be eligible for retroactive refunds dating back to February 4 or April 5. However, no immediate action can be taken. PSCs cannot be filed, and entries must still include the tariffs until liquidation. Post-liquidation, protests will be needed to preserve refund rights.

Importers should monitor all IEEPA-related entries, noting liquidation dates and protest deadlines (180 days post-liquidation). This tracking enables timely PSCs or protests and helps estimate potential refund amounts. If the tariffs are nullified, expect widespread refund claims, which may not be processed until late next year at best.

In Summary:

Importers should resume including tariff costs in landed cost calculations.

Brokers should continue classifying goods and submitting customs paperwork accordingly.

This remains a fast-moving issue. Jaguar Freight will provide additional updates as new information becomes available.

Compliments of Jaguar Freight – a member of the EACCNY