Court Rules IEEPA Tariffs Unlawful: What Importers Need to Know Now

On May 28, 2025, the U.S. Court of International Trade (CIT) issued a landmark ruling in V.O.S. Selections Inc. et al v. Trump and State of Oregon et al v. Trump, finding that the International Emergency Economic Powers Act (IEEPA) did not authorize the imposition of the reciprocal or fentanyl-related tariffs. The court emphasized that IEEPA does not grant the President unrestricted tariff authority without clear congressional approval. As a result, the CIT vacated the associated executive actions and permanently enjoined their enforcement — meaning U.S. Customs and Border Protection (CBP) should no longer collect these specific tariffs.

However, the situation remains fluid. The federal government has indicated it will appeal the ruling and is expected to request a stay, which would temporarily pause the removal of the tariffs while the appeal is pending. Other tariffs imposed under different legal authorities (such as Section 232 of the Trade Expansion Act, e.g., on steel and aluminum) remain in effect and are not impacted by this decision. This legal process could take months or longer, and until resolved, CBP may continue collecting the challenged tariffs.

What This Means for Importers

For now, CBP is likely to continue collecting the IEEPA tariffs until a final decision is rendered. It remains unclear if or when refunds may be issued — and whether they will be automatic. In the meantime, importers should:

• Monitor liquidation dates for any entries on which IEEPA tariffs were paid.

• File protests promptly for those entries to preserve refund rights if the CIT’s ruling stands.

• Note that Post Summary Corrections are not yet available for these entries due to ACE system constraints.

As a point of reference:

• First affected tariffs were imposed on February 4, 2025.

• Liquidation is expected around mid-December 2025.

• Protest deadline falls around mid-June 2026.

If refunds are ultimately permitted after the protest window has ended on your entry, only those who have filed timely protests will be eligible. Once the protest window closes, it is unlikely that retroactive refunds will be granted.

We encourage all affected importers to review their impacted entries carefully and consult with customs advisors to ensure timely action.

We will continue to monitor developments and share updates as they become available.