Hello Customers, Colleagues, and Friends,
We are writing to inform you of a recent federal court decision that may impact the long-term application of certain tariffs, including those imposed under the International Emergency Economic Powers Act (IEEPA). While no immediate changes have been made, we want to provide an overview of this legal development and its potential implications for your import planning.
Update on Tariffs
On May 28, 2025, the U.S. Court of International Trade issued a ruling that blocks the application of tariffs implemented under the IEEPA authority, including:
- The 10% Baseline Tariff that applied broadly across most imports,
- The IEEPA Reciprocal Tariffs, which reached as high as 145% for certain Chinese-origin goods,
- And potentially, the IEEPA Fentanyl Tariff, which imposed a 20% rate on China-origin goods due to national security concerns.
The court stated that these tariff actions “exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs.” At this time, no immediate changes to tariff collection are expected. The White House has indicated it will appeal the ruling, and the legal process is likely to take time. This decision adds another layer of uncertainty to an already dynamic trade environment, but it may ultimately lead to the suspension or removal of IEEPA-based tariffs in the months ahead.
Importers should also be aware that this ruling comes shortly after the U.S. and China agreed to a temporary de-escalation of reciprocal tariffs. Under that agreement, the U.S. reduced IEEPA reciprocal tariffs on Chinese goods from 145% to 30%, and China agreed to suspend its non-tariff measures against U.S. exports.
There has been no mention of any possible refunds for tariffs already paid if the repeal moves forward. If you believe you have an opportunity for duty refund via Post Summary Correction or Protest, contact Krenz & Hannan’s import department.
What this means for you
- No immediate change: Tariffs imposed under IEEPA remain in effect for now. CBP is expected to continue collecting duties until an appellate ruling is issued.
- IEEPA tariffs under review: The court’s ruling casts doubt on the legal basis for the 10% baseline tariff and 20% fentanyl-related tariff. These could potentially be rolled back if the decision is upheld.
- Stay the course (for now): Importers should continue to classify and declare duties as normal. We recommend monitoring shipment timing but not altering strategy until formal policy changes are announced.
Further updates expected: We will continue to monitor legal developments and provide timely updates as additional information becomes available.
Sincerely, Your friends at Krenz and Hannan International
SOURCES
https://www.joc.com/article/federal-court-ruling-blocking-tariffs-resets-shipping-outlook-6013402