On 5/28/2025, the United States Court of International Trade permanently enjoined all tariffs issued in reliance upon the International Emergency Economic Powers Act (IEEPA) and vacated the corresponding tariff orders. In other words, the Court stopped all IEEPA tariffs and cancelled the orders issuing them.
This decision pertains to the tariffs issued on products of Canada, Mexico, and China on alleged fentanyl/trafficking grounds and the reciprocal tariffs, including the 10% “baseline” tariff on essentially all countries other than Canada and Mexico.
Section 232 tariffs on automobiles, automobile parts, steel/iron and aluminum (including derivatives) are unaffected by this decision. Accordingly, those tariffs remain in place.
The Court Order gives U.S. Customs and Border Protection 10 calendar days to effectuate the permanent injunction halting the tariffs. The Order is silent as to whether the decision will apply retroactively and/or whether refunds will be issued.
The U.S. Government has already filed its Notice of Appeal appealing the decision to the United States Court of Appeals for the Federal Circuit. It remains to be seen if a “stay” of the Court of International Trade’s decision pending appeal will be sought and ultimately granted. If a stay is granted, tariff collection could continue pending the Court of Appeals decision.