On Friday, August 29, the Court of Appeals for the Federal Circuit (a specialized court that reviews decisions on federal claims, including trade and customs matters) issued a decision by a 7-4 vote agreeing with the Court of International Trade (CIT, which handles cases involving international trade and customs laws) that President Trump's Reciprocal Tariffs (initiated in April) and Fentanyl Tariffs (initiated in February) are not permitted under current law. The government is expected to appeal this decision to the Supreme Court, and further litigation regarding the legality of these tariffs is anticipated. This decision shows that a majority of the federal judges who have reviewed these legal issues—10 out of 14—have concluded that President Trump does not have the authority to implement the reciprocal and fentanyl tariffs.
Until the appeals are resolved, which may take another year or so, importers should consult with their customs and trade counsel for guidance on preserving their rights to refunds if Friday's decision is ultimately upheld. For example, importers should consider filing protective refund claims or keeping detailed records of affected transactions to ensure they can recover any overpaid tariffs if the decision stands. Taking these proactive steps may help safeguard their interests during ongoing litigation.
MONITOR your entry liquidation status monthly at the very minimum by using your ACE account and running this report with these parameters is what we have found to be the most helpful:
ACE is the only tool that you can use with up-to-date information.
It's important to note that while this decision involves the reciprocal and fentanyl tariffs, the appeals court has not yet ruled on the legality of the tariffs from the first Trump Administration—specifically, the Section 301 tariffs (referring to duties imposed under Section 301 of the Trade Act of 1974, which allows the U.S. to respond to unfair trade practices). Previously, the CIT had upheld the Section 301 tariffs. We expect a decision in that litigation in the near future as well.
We will continue to provide concise updates that distinguish between different types of tariffs and court cases, helping our valued clients & importers stay informed about ongoing litigation and its implications for international trade.
