U.S. Court Rules That Trump AdministrationDid Not Have The Right To Impose Reciprocal Tariffs

May 29, 2025

The Court of International Trade has recently ruled that the Trump Administration did not have the right to use of the  International Emergency Economic Powers Act of 1977 (IEEPA) to impose worldwide reciprocal tariffs.

Additionally, the court also ruled that the Trump Administration did not have the right to impose tariffs on imports from Canada, China, and Mexico, to combat drug trafficking.

As a result, the court ordered that the collection of all reciprocal and drug trafficking levies imposed by the Trump Administration must be stopped by June 7, 2025.

However, the government has appealed against the ruling and asked for the tariffs to remain in force until a decision is made on the appeal. If the court approves the government’s request, then the tariffs will remain in force until a decision is made on the appeal. If the court denies the government’s request, then it is possible that more appeals will be made until the case is ruled on the U.S. Supreme Court.

Therefore, with the potential for continuous challenges to the court’s ruling, we suggest that all shippers assume that the current tariffs are still in force and operate their businesses and shipping strategies accordingly.

In the meantime, if you have any questions about this or another tariff related issue, please contact our OEC Customs Brokerage Advisors here, or feel free to contact your designated OEC Customs Brokerage Advisor directly.

​Thank you!