Tariff Talk

The U.S. Court of International Trade has issued an order requiring the Trump administration to halt tariffs imposed under Section 201 of the International Emergency Economic Powers Act (IEEPA), as well as to cease any further modifications. The administration has been given 10 days to comply. In response, the White House has filed an appeal.

At the heart of the court’s decision are two key considerations: whether the basis for the new tariffs qualifies as an economic emergency, and whether the President has the authority to issue such tariffs—authority typically reserved for Congress during standard legislative processes. While the administration cites the impact of fentanyl, immigration, and trade imbalances as grounds for declaring an “economic emergency,” the court disagreed, stating that “the Trafficking Tariffs fail because they do not deal with the threats set forth in those orders.” The ruling further explains that the orders “do not ‘deal with’” their stated objectives. Rather, as the government acknowledges, the orders aim to create leverage to “deal with” those objectives.

So far, no direct impact has been reported on U.S. Customs operations, and trade procedures remain unchanged. However, the industry should anticipate updated guidance regarding a potential “stay” while the appeal is under review. Until formal notice is issued, all processing and payment of tariffs will proceed as usual. It is worth noting that the 90-day pause on reciprocal tariffs is still set to expire after the July 4th holiday.

This development follows recent threats of 25% tariffs on Apple Inc. and 50% tariffs on the EU—both announced last Friday. The latter was paused by the President on Sunday.

As these rulings unfold, OCEANAIR remains committed to keeping our clients informed. Follow us on social media or contact us at compliance@oceanair.net for ongoing updates.