Special Edition - CIT Decision on Trump Tariffs
To: Clients and Friends of the Firm
From: Meeks, Sheppard, Leo & Pillsbury LLP
Date: May 29, 2025
Re: CIT Decision on Trump Tariffs
The US Court of International Trade (CIT) issued a decision yesterday evening holding that President Trump could not use the IEEPA authority to impose reciprocal tariffs on countries due to trade deficits with the US or on Canada, Mexico and China for shipping fentanyl to the U.S. The decision vacated and permanently enjoined these tariffs. However, they are still in effect.
The CIT has given the Administration 10 days from yesterday, May 28th, to remove the tariffs and will issue a formal Order to that effect. However, the U.S. immediately appealed the decision to the U.S. Court of Appeals for the Federal Circuit (CAFC) in Washington, DC. It is very likely that the Administration also will request a “Stay” of the CIT’s order, while the appeal is pending. If that Stay is granted, it would allow the Administration to continue to collect the tariffs. If the CAFC upholds the CIT’s decision, the Administration certainly will appeal that decision to the U.S. Supreme Court. Therefore, any reports that the tariffs are now no longer effective are incorrect.
The CIT decision also indicated another avenue for the Administration. They noted that Section 122 of the Trade Act of 1974 gives presidents the authority to impose 15% tariffs for 150 days in cases of “large and serious” trade deficits and unfair trade practices. This Administration has not yet used that Section to impose Reciprocal Tariffs or “Fentanyl Tariffs”.
Please note that at this time there is no change to these existing additional tariffs, and they have not been removed or rescinded! Importers must continue to properly classify and value your shipments in accordance with the current HTSUS subheadings and retaliatory tariffs in place and pay those tariffs at the time of entry.
The CIT decision does NOT affect the restrictions on de minimis shipments or postal mail from China, Hong Kong or Macau. The decision also does not affect any additional tariffs in place or that will be in place under Sections 232 or 301.
Because there is a chance that the CAFC and Supreme Courts ultimately will agree with the CIT’s decision, it is recommended that importers ask your customs broker to provide you with a list of your entries where the additional duties were paid, with date of entry, port of entry, entry number and date of liquidation and update that list on a monthly basis. This would allow your company to file protests or Post Summary Changes to obtain refunds of the additional tariffs paid once the tariffs are officially vacated.
We will definitely keep you informed of any developments.
Please contact us if you have any questions: Ralph Sheppard at ralph.sheppard@mscustoms.com or (203) 257-6614; Robert Leo at robert.leo@mscustoms.com or (212) 949-7120; or Taylor Pillsbury at taylor.pillsbury@mscustoms.com or (949) 719-2712; Andrea Abraham at andrea.abraham@mscustoms.com or (203) 305-8248; Michael Jackson at michael.jackson@mscustoms.com or (949) 719-2712.