Court Ruling Challenges Executive Tariff Authority Under IEEPA

U.S. Court of International Trade sets limits on presidential tariff powers; importers advised to review potential implications

On May 28, 2025, the U.S. Court of International Trade (CIT) issued a ruling (Court Nos. 25–00066 & 25–00077) addressing the scope of presidential authority under the International Emergency Economic Powers Act (IEEPA). The decision sets aside specific tariffs enacted under the April 2 “Liberation Day” initiative — namely, a 10% general tariff on most U.S. imports and additional duties on goods from countries with significant trade surpluses — concluding they exceeded the authority conferred by IEEPA.

• Read the CIT ruling
• Review previous tariff updates on our blog

Key Takeaways

1. Section 232 Tariffs Unaffected Tariffs implemented under Section 232 of the Trade Expansion Act — affecting imports such as steel, aluminum, and certain vehicles — remain in effect. These measures were not part of the CIT’s decision.

2. Administrative Adjustments Expected U.S. Customs and Border Protection (CBP) and the Office of the U.S. Trade Representative (USTR) are expected to provide guidance following the ruling. Updates may include revisions to the Harmonized Tariff Schedule and clarification on refund procedures for duties paid under the affected tariffs.

Legal and Procedural Outlook

Appeal Process The federal government has 60 days to appeal the CIT decision. A stay of enforcement may be requested, which could temporarily preserve the existing tariff framework while the case proceeds through higher courts.

Considerations for Importers

Monitor Agency Guidance Importers should actively monitor announcements from U.S. Customs and Border Protection (CBP) and the Office of the U.S. Trade Representative (USTR) for updates related to tariff changes and compliance requirements. We recommend the following resources for official updates:

• **CBP’s Cargo Systems Messaging Service (CSMS)** — for real-time regulatory updates affecting import and export operations
• **WhiteHouse.gov **— for official executive orders, trade-related proclamations, and policy amendments

Maintain Compliance Until further notice, businesses should continue to follow existing procedures and consult trade counsel or customs brokers to assess any impact on current or past shipments.

Ongoing Support from CLM

At CLM, we provide clarity in times of global trade uncertainty. Our team is actively tracking regulatory shifts and is available to help clients model tariff exposure, identify mitigation strategies, and ensure full compliance with evolving HTS and import requirements.

• For more insights, visit our *Medium blog or follow us on [LinkedIn](https://www.linkedin.com/company/compass-logistics-marine)*.
• Need tailored support? **Contact us** to schedule a consultation with our trade and compliance experts.

Compass Logistics & Marine (CLM) is a Fort Lauderdale-based, veteran-owned logistics company that specializes in customs brokerage, import/export, trucking, and warehousing services. With a worldwide partner/agent network and key certifications — including IATA and FMC, CLM provides customized, cost-effective, and compliant logistics solutions through specialized divisions — CLM Tech, Yacht, Marine & Aviation, General, and Industrial.

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