Court of International Trade Invalidates IEEPA-Based Tariff Orders

On May 28, 2025, the Court of International Trade (“CIT”) issued a significant ruling in V.O.S. Selections, Inc. et al v. Donald J. Trump (Case No. 25-cv-66), invalidating all executive orders that imposed tariffs under the International Emergency Economic Powers Act (IEEPA). The Court, sitting as a three-judge panel due to the consolidation of multiple related cases:

• Found that the 10% universal tariff on all countries was not permissible under IEEPA, as the statute is not intended to address trade imbalances, especially when a more specific statute exists for balance of payments issues.
• Found that the 25% tariffs on products from China, Canada, and Mexico, imposed in response to a fentanyl emergency, were not directly related to the drug threats cited and could not be justified as a means to pressure other countries to address the problem.
• Permanently enjoined enforcement of these tariffs and ordered U.S. Customs and Border Protection (CBP) to issue administrative guidance within 10 days (by June 7, 2025) on processing entries and potential refunds.

The government has already filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit.

While the current IEEPA-based tariffs are no longer enforceable – for the moment, at least – importers must wait for CBP to provide guidance on how to process entries without IEEPA tariffs. And companies may be able to pursue refunds, although it is too early to know for certain if that possibility will arise soon or at all. CBP's guidance is due by June 7, 2025, unless the government’s appeal leads to any intervening decisions or delays by the Federal Circuit.

Imported goods that are subject to other existing tariffs are not impacted by this order, such as Section 301 duties on Chinese products; Section 232 duties on automobiles, automotive parts, steel, and aluminum; and duties imposed under anti-dumping and countervailing duty programs.

Companies should await CBP implementation guidance, prepare documentation for potential refunds, monitor appeal developments, and assess the impact on pricing and supply chain decisions. Higher courts may modify this decision, and it is reasonable to expect these issues to go to the Supreme Court, which means that there may be uncertainty for several months, even under the most aggressive schedules.

On May 29, 2025, the U.S. Court of Appeals for the Federal Circuit stayed the Court of International Trade's decision while undertaking an emergency stay motion by the U.S. government to continue the IEEPA tariff program.

Honigman’s Regulatory & Executive Order Task Force is closely monitoring developments and offering guidance to help businesses navigate these changes. Please reach out to Angela Gamalski, Chauncey Mayfield, Daniel Wendt, or another member of the Regulatory Practice Group or Commercial Transactions Practice Group with any questions or for further assistance in navigating these changes.