Appellate Court Confirms IEEPA Tariffs Illegal

In a judgment issued this afternoon, the U.S. Court of Appeals for the Federal Circuit (CAFC) ruled that most of President Donald Trump's global tariffs are illegal as they exceed the authority granted under the International Emergency Economic Powers Act (IEEPA). The full text of the CAFC's opinion is available here.

The CAFC affirmed the earlier decision by the Court of International Trade (CIT), declaring the "Trafficking and Reciprocal Tariffs" invalid as contrary to law, and upheld the grant of declaratory relief. However, the panel vacated the CIT's permanent injunction that universally enjoined enforcement of these tariffs, remanding the case back to the lower court for reevaluation of injunctive relief, including consideration of the four eBay factors and the Supreme Court's holding in CASA. As a result, the tariffs will remain in place while this litigation continues during a likely appeal to the U.S. Supreme Court.

We will continue to monitor these developments as they progress. Should you have any immediate questions, please contact one of the following trade professionals here.