On May 28, 2025, the U.S. Court of International Trade (CIT) ruled that the administration exceeded its authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA), including those targeting fentanyl-related imports. A day later, the D.C. District Court ruled in a similar fashion on a separate case, with both rulings now being appealed by the administration.
Following the decisions, the U.S. Court of Appeals for the Federal Circuit (CAFC) issued a temporary stay, pausing the lower court’s rulings until the appeals process plays out. The D.C. District Court also stayed its own decision, meaning that both rulings are currently on hold while the appellate review proceeds.
While these rulings mark a significant legal development, they do not immediately change current requirements for importers. However, it’s critical to stay informed, as the legal outcome could affect future duty obligations.
What does this mean for importers?
Imports into the United States subject to the IEEPA illicit drug fentanyl and the reciprocal tariffs must continue to be filed properly and duties paid during the appeals process. The current applicable tariffs include:
- Illicit drug fentanyl tariffs: 20% tariff on China products and 25% on Canada and Mexico products that do not qualify for the United States-Mexico-Canada (USMCA) agreement. There is a reduced rate of 10% for energy products and potash from Canada and Mexico.
- Reciprocal tariffs: 10% for most countries until July 9, 2025, and China until August 12, 2025.
Are other tariffs still applicable?
These court rulings only affect IEEPA duties. They do not affect other duties, including Section 301, Section 232 (steel, aluminum, auto parts, automobiles), which remain in place.
What to look for next?
The legal process can be lengthy, with other trade-related legal disputes still pending after several years. For now, the CAFC has scheduled briefings on the CIT decision through July 9, 2025.
The bottom line is that tariffs are here to stay. While implementation of tariffs has been irregular over the last few months, the objectives of using tariffs from the current and previous U.S. administrations have been consistent.
This year, we’ve seen a continued wave of Section 232 Investigations targeting a wide range of products including copper, timber and lumber, semiconductors and semiconductor manufacturing equipment, pharmaceuticals and pharmaceutical ingredients, trucks, processed critical minerals and derivative products as well as commercial aircraft and jet engines. While tariffs are not in effect on these products yet, this represents the continual change in the tariff environment, which is showing strong support for increased tariffs.
What should importers be prepared for?
1. Track impacted entries and key deadlines
Importers should closely monitor their import transactions where IEEPA illicit drug fentanyl and reciprocal tariffs have been applied. Track the liquidation status of the entries, which typically occurs within one year. Once the entry is liquidated, a 180-day protest period is available to the importer. Importers will also need to ensure they have all necessary documentation on hand for those import transactions.
2. Understand your duty exposure
While a refund of duties is not a guarantee through this process, it is best to be prepared and understand the full exposure to these tariffs. Importers can track their data using our new U.S. Tariff Impact Analysis Tool in their online portal. Importers interested in protecting their interests should seek advice from their customs trade counsel.
3. Review importer bond requirements
Importers should continue managing their importer bond. This bond is a financial guarantee that the importer will comply with all laws and regulations and make necessary duty payments. The importer bond is set at 10% of the importer’s duties, taxes, and fees paid in the previous year. This will continue to be an important part of the importing process as applicable duties continue to increase.
As legal challenges to the IEEPA tariffs continue to unfold, the situation remains dynamic and uncertain. With both key rulings now stayed and appeals in motion, importers should prepare for a potentially lengthy legal process.
In the meantime, staying compliant, keeping accurate documentation, and monitoring tariff exposure will be essential. Importers are strongly encouraged to consult with trade policy experts to understand how these developments may impact their specific operations and to evaluate potential strategies for duty recovery or mitigation.
Stay informed
Developments in customs and trade continue to evolve—stay informed to be prepared:
