What Importers Should Know About the Recent CIT Ruling on Tariffs

What Importers Should Know About the Recent CIT Ruling on Tariffs

On May 28, 2025, the U.S. Court of International Trade issued a decision that could significantly impact how certain tariffs are applied. The court found that tariffs imposed under the International Emergency Economic Powers Act (IEEPA)—including the so-called “fentanyl” tariffs and the more recent “reciprocal” tariffs—were not lawfully implemented.

This ruling affects:

• The 20% fentanyl tariffs on imports from China
• The 25% tariffs on non-USMCA goods from Canada and Mexico
• The 10% reciprocal tariff applied globally as of April 5
• Upcoming country-specific increases scheduled for July 9

However, importers should note: this decision does not impact Section 232 or Section 301 tariffs (including those on steel, aluminum, and Chinese goods from previous administrations).

What Happens Now? The government has already filed an appeal. During this process:

• All relevant tariff provisions remain in effect.
• Importers must continue declaring and paying duties as usual.
• The restriction on using the $800 de minimis threshold for affected goods still applies.
• While no immediate action is required from importers, it is advisable to:
• Regularly monitor your entries and liquidation status.
• Be prepared to file protests or court actions to preserve potential refund rights, if the appeal fails.

Western Overseas will continue tracking this issue and provide updates as new information becomes available.

Need support? Contact our team with any questions about how this ruling may affect your business.