By Len Fleisig
Court of International Trade Rules Trump’s IEEPA Tariffs Unconstitutional
In a decisive ruling issued Wednesday, the U.S. Court of International Trade (CIT) declared that former President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unconstitutional. The Court held that these tariffs represented an unlawful overreach of executive authority.
This ruling invalidates several key tariff measures, including:
- The 25% tariff increases on imports from Mexico and Canada,
- 20% tariffs levied on Chinese-origin goods, and
- The "universal reciprocal" tariff rates, currently set at 10%.
Additionally, the CIT found that all tariffs enacted under the IEEPA—encompassing those targeting Canada, Mexico, China, and the so-called “Liberation Day” tariffs—are legally invalid.
Tariffs That Remain in Force
Importantly, this decision does not affect tariffs imposed under Section 232 of the Trade Expansion Act of 1962. As such:
- The 25% tariffs on aluminum and steel remain in full effect.
- Chinese tariffs imposed under Section 301 are also unaffected.
- A Justice Department spokesman asserts that the Court Order would also mandate that the administration reinstate de minimis duty-free entry for shipments from China worth $800 or less.
Appeal and Legal Developments
The U.S. government is expected to appeal the CIT’s decision and will likely seek to maintain the current tariff regime throughout the appeals process.
In a swift response, the Court of Appeals for the Federal Circuit has granted a stay of the CIT’s judgment. As a result, all challenged tariffs remain in effect while appellate proceedings are underway.
The U.S. government immediately appealed the decision and successfully pursued measures to preserve the tariffs during the appellate process. The Court of Appeals for the Federal Circuit has granted a stay of the CIT’s judgment. As a result, all IEEPA tariffs remain in effect for now.
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