Federal Court Overturns Trump’s
Tariffs: What’s Next?

May 29, 2025

As many of you may have heard or seen on the news, yesterday, May 28th, the United States Court of International Trade in New York struck down President Trump’s IEEPA tariffs affecting China, Canada, and Mexico, as well as his Worldwide and Retaliatory Tariffs. The three judge panel issued in V.O.S Selections Inc. et al v. Donald J. Trump et al: Court No. 25-66 and The State of Oregon et al v. Donald J. Trump et al: Court No 25-77 a combined opinion concluding that IEEPA did not authorize the imposition of either the reciprocal or fentanyl tariffs. The opinion explained that:

IEEPA does not authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs. The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders. This conclusion entitles Plaintiffs to judgment as a matter of law … summary judgment will enter against the United States. See USCIT R. 56. The challenged Tariff Orders will be vacated and their operation permanently enjoined.

There is no question here of narrowly tailored relief; if the challenged Tariff Orders are unlawful as to Plaintiffs, they are unlawful as to all.

The government has already filed an appeal and a motion to stay (suspend) the CIT’s order to dismantle the tariffs, pending a decision on appeal to the Court of Appeals for the Federal Circuit in Washington D.C., claiming irreparable injury to national security interests should the stay not issue and that the plaintiffs will not suffer injury as a result of a stay because refunds with interest will be available should the ruling be affirmed. 

While there has not yet been a decision on the motion to stay, for the immediate future tariffs are likely to continue to be collected, and it is not yet clear when a final decision will be issued or the type of mechanism necessary in order the effectuate refunds once the tariffs are terminated. It is advisable that importers monitor the liquidation of their entries and file protests, as necessary, to preserve their right to refunds.

So, while the decision is very good news, we will all have to stay the course for a while longer and be prepared to act when needed. If you would like to know more about how you can protect your interest by filing protests, please contact George Tuttle III at geo@tuttlelaw.com or at 415-986-8780.

 

The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence and may not be considered as such.

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Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

 

 

 

 


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