27.June.2025
Below are the recent litigation developments concerning the President’s Tariffs issued under the International Emergency Economic Powers Act (“IEEPA”):
- V.O.S. Selections, Inc. v. U.S. (Ct. Int’l Trade, May 28, 2025) – STAYED PENDING APPEAL:
The Court of International Trade (“CIT”) held that IEEPA does not authorize the President to impose “reciprocal tariffs,” reasoning an unlimited delegation of authority is unconstitutional. Further, the CIT held the authority under IEEPA does not extend to fentanyl-related tariffs because these tariffs lack a sufficient connection to drug control. The decision is currently stayed pending appeal in the CAFC, with oral arguments scheduled for July 31, 2025. In the interim, all tariffs remain in full force and effect.
- Learning Resources, Inc. v. Trump (D.D.C., May 29, 2025) – STAYED PENDING APPEAL:
The U.S. District Court for the District of Columbia ruled that the CIT does not hold exclusive jurisdiction in this matter. It further concluded that the President lacks the authority under IEEPA to impose the tariffs at issue. Like in V.O.S. Selections, this decision has been stayed pending appeal. An attempt to expedite the case by pushing the case directly to the Supreme Court, past the DC Circuit of Appeals, was rejected.
- California v. Trump (N.D. Cal, June 2, 2025) – DISMISSED:
The Northern District of California held that the CIT does have exclusive jurisdiction, contradicting the Learning Resources court, over challenges to these tariffs. Accordingly, the court dismissed the case, indicating that it should have been initially filed with the CIT.
- Chapter1 LLC v. U.S., CIT Case No. 25-cv-0097 – DISMISSED:
This proposed would have certified the V.O.S. Selections as a class action lawsuit. However, the plaintiffs have since withdrawn the case.
These developments spotlight critical challenges to executive authority under IEEPA, creating uncertainty for businesses impacted by the tariffs. As appeals progress and jurisdictional questions linger, importers should stay alert for updates affecting compliance and tariff obligations.
