The Court of International Trade (CIT) Opinion Vacates Both Trump Administration Reciprocal and Fentanyl Tariffs
The following was taken in part from International Trade Today and the NCBFAA Legislative Advisor Nicole Bivens Collinson of Sandler, Travis & Rosenberg, P.A.
On Wednesday evening, May 28th, the Court of International Trade (CIT) issued its opinion in both V.O.S Selections Inc. et al v. Donald J. Trump et al: Court No. 25-66 and The State of Oregon et al v. Donald J. Trump et al: Court No 25-77.
As such the court vacated President Donald Trump’s reciprocal tariffs and tariffs on China, Canada, and Mexico, all of which were issued under the International Emergency Economic Powers Act. The court held that the retaliatory tariffs “exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” and that the tariffs on China, Canada, and Mexico “fail because they do not deal with the threats set forth in those orders.” Judges Gary Katzmann, Jane Restani and Timothy Reif permanently enjoined the tariffs, declaring that if the tariffs are “unlawful as to Plaintiff they are unlawful as to all.”
The Administration has ten (10) calendar days to issue orders implementing the CIT permanent injunction shutting down International Emergency Economic Powers Act tariffs on China, Canada, and Mexico, as well as the 10% and country-specific IEEPA reciprocal tariffs, according to a judgment issued by the court alongside its opinion.
The Trump administration has moved forward to seek a stay of the order and filed an appeal to the Court of Appeals for the Federal Circuit (CAFC).
For the immediate term, tariffs are likely to continue to be collected, and it is not yet clear whether or when refunds will be issued, or if they will be automatic. Further information will be provided after the order is issued. However, it is critical for importers to monitor the liquidation of entries on which tariffs were paid to file protests. Post summary corrections will not yet be available due to the constraints of the ACE system. RIM is prepared to assist our importers to file protests as necessary to preserve and protect importers’ rights to refunds in accordance with the CIT decision.
The first tariffs went into effect on 2/4/2025. Liquidation dates are approximately mid-December. The protest deadline would be approximately mid-June 2026. There is time to protest if necessary.
RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any further questions.
