CIT Ends Trump IEEPA Tariffs!?!
- Arne Mielken
- Jun 2
- 5 min read
IEEPA tariffs illegal? Court says yes. Read on what it means and download the CIT decision, the appeal and the granting of the appeal.
The U.S. Court of International Trade (CIT) in May 25 ruled that the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unconstitutional. This ruling reshapes how the U.S. government can use national security powers to regulate trade—something Customs Consultants, compliance officers, and importers must understand. The ruling was successfully appealed in is - at the time of writing - being considered further. In the meantime, the tariffs continue to be levied.
We have the details and downloads
Key Questions Covered in This Blog
What did the Court of International Trade decide?
Is IEEPA a legal tool for tariffs?
What was the Court’s interpretation of "deal with" under IEEPA?
What authority does the President have instead?
Has the administration appealed?
Are other tariff programs affected by this ruling?
Will CBP stop collecting these IEEPA tariffs?
Will importers get refunds if the ruling stands?
Does this impact Section 301 or 232 tariffs?
What about the de minimis exemption for Hong Kong, China, and Macau?
Downloads & Resources (Pro Plan)
Abbreviations Used In This Blog
IEEPA – International Emergency Economic Powers Act
CIT – Court of International Trade
CBP – U.S. Customs and Border Protection
"Emergency powers cannot be a backdoor to unlimited tariffs. This case marks a hard limit on what the President can do alone." — Arne Mielken, Managing Director, Customs Manager
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What did the Court of International Trade decide?
The CIT determined that the Trump administration violated the U.S. Constitution by using IEEPA to unilaterally impose tariffs. The Court held that IEEPA was never meant to be a tool for trade leverage. Granting the President this kind of tariff power without Congressional involvement would dismantle the separation of powers enshrined in the Constitution.
Is IEEPA a legal tool for tariffs?
In one word: No. IEEPA was designed to allow quick executive action during real emergencies, such as military threats or cyberattacks. But it was never meant to justify broad tariffs during trade negotiations. Imposing import taxes under IEEPA turns a surgical emergency statute into a blunt economic weapon. That, according to the CIT, crosses a legal line.
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What was the Court’s interpretation of “deal with” under IEEPA?
The Court zeroed in on the phrase "deal with", which is central to IEEPA. It ruled that the President can only act when there’s a direct, specific threat to national security. The Trump administration’s rationale for using tariffs against Mexico or China to influence immigration or trade was deemed too vague and political. The use of IEEPA here was too disconnected from any imminent threat.
What authority does the President have instead?
The Court reminded us of Section 122 of the Trade Act of 1974. This provision gives the President temporary tariff authority in response to currency imbalances or balance-of-payment deficits, but only under specific conditions and with oversight. IEEPA is not a catch-all for trade actions.
Has the administration appealed?
Yes. The Biden administration has appealed the decision to the U.S. Court of Appeals for the Federal Circuit. Legal experts expect the government to struggle, as the CIT's reasoning is grounded in longstanding constitutional principles. If the appeal fails, the U.S. Supreme Court may weigh in.
Are other tariff programs affected by this ruling?
No. This ruling targets only IEEPA-based tariffs. Other tariff regimes remain fully in force, including:
Section 232: National security (e.g., steel, aluminum)
Section 301: Unfair trade practices (e.g., China tariffs)
Section 201: Global safeguard measures
Section 337: Intellectual property rights enforcement
Will CBP stop collecting these IEEPA tariffs?
Not yet. The Federal Circuit has granted a temporary stay of the CIT’s decision. That means CBP will continue collecting the tariffs while the case is on appeal. This legal limbo could drag on for months or even years.
Will importers get refunds if the ruling stands?
Potentially, yes. If higher courts uphold the CIT’s ruling, importers who paid IEEPA-based tariffs may be entitled to refunds. However, no refund process currently exists. Importers should start preparing by identifying affected entries and tracking duties.
Does this impact Section 301 or 232 tariffs?
Not directly. Courts have previously upheld Section 232 tariffs, and litigation over Section 301 Lists 3 and 4A is proceeding separately. The CIT’s IEEPA ruling doesn’t change those legal battles.
What about the de minimis exemption for Hong Kong, China, and Macau?
That’s where things get murky. The revocation of de minimis treatment for goods from Hong Kong, Macau, and China was tied to a national emergency declared under IEEPA. This ruling may open the door to legal challenges against those restrictions. For now, however, the exemptions remain revoked.
Arne’s Takeaway
This is a significant ruling. It puts real limits on how the executive branch can wield emergency powers in the name of trade. For importers, this is your signal to audit your entries, flag IEEPA-related tariffs, and monitor the appeal. Stay proactive. If this ruling stands, refunds and future tariff strategies could be affected.
Expert Recommendations
Run a tariff impact audit: Isolate entries where IEEPA-based tariffs were applied.
Prepare refund documentation: Build internal tracking spreadsheets now.
Watch the appeals process: Subscribe to legal alerts or use a customs consultant.
Sources & Further Information
Full CIT Ruling: https://www.cit.uscourts.gov
IEEPA statute: 50 U.S.C. 1701-1707
Refund guidance updates: www.customsmanager.info
Download documents
Disclaimer
This blog post is intended for educational purposes only and does not constitute legal advice. Please consult with qualified trade attorneys or customs consultants for specific guidance.
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