A tariff litigation update from the federal appeals court ruled that most of the former Trump administration’s “reciprocal” tariffs—particularly those justified under national security concerns—were improperly enacted.
The court found that the International Emergency Economic Powers Act (IEEPA) does not grant the executive branch such broad tariff authority without Congressional approval.
However, despite the ruling, the tariffs will remain in place through at least October 14, 2025, as the government prepares to likely appeal to the Supreme Court.
What the Appeals Court Decided
- A 7–4 decision declared the bulk of emergency tariffs unlawful, emphasizing that trade actions of this scale require legislative oversight.
- This ruling does not impact tariffs established through other mechanisms, such as those on steel, copper, or certain country-specific duties.
What the Administration Plans Next
- Treasury Secretary Scott Bessent insists the Supreme Court will uphold the tariffs.
- If not, the administration may use Section 338 of the 1930 Smoot-Hawley Act as a legal workaround.
- Trade negotiations continue globally, suggesting new tariff structures could emerge if the current ones are struck down.
What It Means for Coppersmith Clients
The message is clear for now: tariffs must still be paid, and importers and shippers should not expect immediate relief.
Here’s what to keep in mind:
- Keep paying applicable tariffs—nothing has changed legally (yet).
- Refund potential exists only if courts ultimately overturn the policy—delayed action may limit eligibility.
- This may stretch into 2026—the Supreme Court process and possible legislative rewrites will take time.
- Monitor CBP guidance closely—compliance strategy must remain flexible.
Coppersmith’s Recommendation
Coppersmith Global Logistics continues monitoring this situation. We advise our clients to:
- Stay up to date on rulings and appeals
- Maintain organized, accurate records of entries and tariff payments
- Be prepared for retroactive action should refunds or policy changes occur
- Reach out to our compliance experts with any specific questions
If you’re unsure how this affects your cargo or tariff strategy, Coppersmith is here to help. Let’s make sure you’re protected and prepared for every possible outcome.
