The U.S. Court of International Trade (CIT) recently ruled on May 28, 2025, that the tariffs implemented by the White House through the use of the International Emergency Economic Powers Act (IEEPA) were deemed to be inconsistent with the use of the Act and the White House did not have the authority to impose tariffs. As part of its ruling, the CIT ordered tariffs imposed under IEEPA to cease within 10 days of the ruling.
However, the White House has appealed the ruling and has been granted a temporary stay.
What does this mean for importers?
At this time, tariffs imposed under IEEPA remain in place and there is no change to the collection of duties for goods entering the United States that are subject to those tariffs. These include:
• 25% tariff on Canada-origin and Mexico-origin goods
• 30% tariff on China-origin goods
• 10% tariff on goods originating in all other countries
What happens next?
By June 9, both parties to the legal proceedings must submit their argument to the appellate court. After these submissions, the U.S. Court of Appeals for the Federal Circuit (CAFC) will rule whether to extend the stay on the (CIT) ruling until the appellate process is complete, or not. Should they rule to extend the stay, tariffs will remain in place. Should they rule not to extend the stay, the White House will have the opportunity to appeal to the Supreme Court to extend the stay. We will provide additional information to you as rulings are made and timelines announced.
Documentation and Duty Corrections
During the period of the stay, U.S. Customs and Border Protection will pause post-summary corrections in response to limitations related to the Automated Commercial Environment (the system through which customs documentation is submitted). It is critical that during this period you carefully review documentation on all transactions to which tariffs are applied to ensure you are able to file for corrections in the event the CIT judgement and order is successfully upheld.
Impact on Customs Bonds
The implementation of a 25% tariff may push importers’ duty outlay beyond the value of their current customs surety bond. It is important to understand the impact of these tariffs to your customs surety and be proactive in addressing any surety shortfall. For more information, please refer to the article ‘New tariffs may require importers to secure and/or increase customs surety bonds‘.
In addition, in the event you have a temporary import shipment and an associated temporary import bond, you must ensure you use a Single-Entry Bond (SEB) to cover off any difference in the value of your temporary bond and any continuous import bond you may have.