Court of International Trade blocks IEEPA tariffs

May 29, 2025

NNA Alert
FOR IMMEDIATE RELEASE
Contact: Lynne Lance, executive director, lynne@nna.org

Late yesterday, the Court of International Trade ruled that the tariffs imposed under the International Economic Emergency Powers Act (IEEPA) are not legal. The unanimous decision by the three-judge panel found that IEEPA does not provide the authority for the sweeping tariffs imposed by President Donald Trump on the basis of emergency declarations for Fentanyl smuggling and alleged trade imbalances.

The decision blocks the Fentanyl tariffs imposed against Canada, Mexico and China as well as the reciprocal tariffs announced in April. While the decision would prohibit tariffs on Canadian newsprint under the Fentanyl action, it was already exempt as a USMCA-compliant product.

The Trump Administration has signaled it will appeal the ruling to the U.S. Supreme Court where the outcome is uncertain. The order gives the administration 10 days to issue the orders necessary to rescind the tariffs, but it is not known how the Supreme Court will respond to the appeal. It could reject the appeal, accept it and block the lower court’s order during the appeal process, or accept the appeal but allow the order revoking the tariffs to take effect. The decision could also provoke the administration to impose other tariffs under Section 301 and 232 authority that were unaffected by the decision.