Last night, the Court of International Trade ruled that President Trump does not have authority to impose tariffs under the International Emergency Economic Power Act (IEEPA). On Thursday, a federal appeals court granted the Trump administration’s request to pause the lower court ruling. The pause will remain in effect until the appeals court can rule on the administration’s motion for a longer-term pause of the lower court decision, which could take until mid-June. The appeals court gave the plaintiffs until June 5 to respond to the government’s stay. We will continue to keep you updated as the lawsuit progresses and more information becomes available.

The ruling yesterday overturned the 10% global tariffs, reciprocal tariffs on 60+ countries (which are currently paused until July 9), tariffs on China (currently paused until August 12) and retaliatory tariffs for the fentanyl crisis on Canada, Mexico and China. This ruling does not impact tariffs imposed under Section 232 of the Trade Expansion Act, including 25% tariffs on automobiles and parts and 25% tariffs on steel and aluminum. The ruling also will not impact the ability of Trump to impose new industry specific tariffs that have been floated on pharmaceuticals, lumber and timber, critical minerals, smart phones and other products.