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Customer Advisory: Court of International Trade Rules Against Several Trump Tariffs
May. 29, 2025
Customer Advisory
What Now?
A federal three-judge panel from the U.S. Court of International Trade found that the White House exceeded its legal authority to impose worldwide tariffs, including a 10% tariff on dozens of countries and a 30% tariff on Chinese imports. The court also ordered the Trump administration to remove the tariffs within 10 days, including a 25% tariff on certain goods from Canada and Mexico. Refer to Slip-Op 25-66.pdf.
Most people may have never heard of the U.S. Court of International Trade. The United States Court of International Trade is a federal court that adjudicates civil actions arising out of U.S. customs and international trade laws. Seated in New York City, it exercises broad jurisdiction over most trade-related matters and is permitted to hear and decide cases anywhere in the country, as well as abroad. It consists of nine judges appointed by the President and confirmed by the Senate, similar to how Supreme Court appointments are made. Its origins go back to the Customs Administrative Act of 1890, and it is designed to settle civil disputes related to customs and tariffs. The ruling on Wednesday, May 28, 2025, came from a panel of three judges. The chief judge was appointed by Democratic President Barack Obama, while the other two members were appointed by Republicans, including one by President Trump himself.
It should be noted that while the court said that President Trump did not have the power to implement these tariffs under the International Emergency Economic Powers Act (IEEPA), it did point to two other statutes that could be used to allow the tariffs on a different basis.
The judgment pertained to two lawsuits—one brought by a group of states led by Arizona and Oregon, and the other by the non-partisan Liberty Justice Center, on behalf of a small group of independent businesses that claimed that President Trump had exceeded his authority. The bottom line is that this does not mark a final resolution. The Trump administration has 60 days to file an appeal and has already moved to do so in the U.S. Court of Appeals for the Federal Circuit.
Importers should note that the tariffs will continue to be collected, and it is too early to know when or if refunds will be issued, nor whether they will be automatic. Meanwhile, importers should monitor liquidation dates and note the entries on which these tariffs were paid in order to file Post Summary Corrections or Protests, as the case may be. The first tariffs were effective on February 4, 2025, and liquidation is expected to occur in mid-December 2025. The deadline to file a protest is anticipated for mid-June 2026.
Informational document brought to you by KWE-USA Corporate Compliance