CIT and DC Court Rulings on Trump Tariffs
On May 28, 2025, a three-judge panel of the Court of International Trade (“CIT” or “Court”) vacated President Donald Trump’s reciprocal tariffs and tariffs on China, Canada, and Mexico, all of which were issued under the International Emergency Economic Powers Act (“IEEPA”). The court held that the retaliatory/reciprocal tariffs “exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs” and that the Fentanyl Tariffs on China, Canada, and Mexico “fail because they do not deal with the threats set forth in those orders.” The Court permanently enjoined the tariffs, declaring that if the tariffs are “unlawful as to Plaintiff they are unlawful as to all.”
Shortly thereafter, the CIT issued its judgment (the “Judgment”) stating that the government has 10 days to issue orders implementing the permanent injunction and shutting down the tariffs. On the same day, the Government filed a notice of appeal requesting a “stay” of the CIT’s order, which was subsequently granted. The “stay” delays the CIT’s order until both parties have briefed the Court on additional issues. The Deadline for Plaintiffs to respond is June 5, 2025.
Similarly, on May 29, 2025, the U.S. District Court for the District of Columbia ruled that IEEPA doesn’t allow the president to impose tariffs. The Court said the “Constitution treats the power to regulate and the power to impose tariffs separately because they are not substitutes.” To regulate is to “establish rules governing conduct,” while the power to tariff is to “raise revenue through taxes on imports.” According to the Court, if Congress wanted to give POTUS the power to tax “commerce from any country at any rate for virtually any reason, it would have had to say so.” Learning Resources v. Trump, D.D.C. # 25-1248. The Government filed a notice of appeal.
Quick Takeaways:
- Neither order is final. Regardless of the outcome, additional appeals on both cases are to be expected.
- The timeframe for CBP’s instructions has been temporarily stayed, but the instructions will determine how the Judgment will go into effect.
- The following tariffs have been enjoined:
- Reciprocal Tariffs (various rates between 10%-50%)
- IEEPA Tariffs on China (20%)
- IEEPA Tariffs on Canada (25%)
- IEEPA Tariffs on Mexico (25%)
- Tariffs on “low value” shipments from China
Stay tuned for further updates.
