Appeals court grants stay on the tariff ruling

The U.S. Court of Appeals for the Federal Circuit granted an administrative stay, allowing the 'Reciprocal' and 'Fentanyl' tariffs to remain in effect pending appeal.

As a result, there are no immediate changes to your customs filing or tariff payments obligations.

Background

The U.S. Court of International Trade (CIT) ruled on May 28, 2025, that those tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, as they exceeded presidential authority, thereby requiring the government to remove the 'Fentanyl' and 'Reciprocal' tariffs.

However, on May 29, the U.S. Court of Appeals for the Federal Circuit entered an administrative stay, ensuring that the tariffs remain in effect for now. As a result, there are no immediate changes to your customs filing or tariff payment obligations. The outcome of the appeal could lead to the tariffs being struck down potentially requiring refunds or upheld, maintaining current duties. The process for refunds, if applicable, is currently unclear.

Affected Tariffs

30% IEEPA tariff on China (20% Fentanyl 10% Reciprocal) the 25% tariff on certain non-USMCA-compliant goods from Mexico and Canada, and the 10% baseline reciprocal tariff on nearly all other nations.

Unaffected Tariffs

It's important to note that this ruling and stay do not affect tariffs imposed under other legal authorities, such as:

Section 232 tariffs: Duties on steel, aluminum, and automobiles, semiconductors and other pending sectoral investigations imposed under the Trade Expansion Act of 1962 for national security reasons. Section 301 tariffs: Duties on Chinese imports, initially imposed during President Trump’s first term and expanded under subsequent administrations,

Questions

Will I get back the tariffs that I paid already?

If after appeal the lower courts ruling is reinstated, the government is expected to be forced to reimburse tariffs paid under these acts.

Should i hold back from clearing my customs?

Based on the current hold the existing tariffs are staying until it is adjudicated which can potentially take between 6 to 12 months additionally if the lower courts ruling goes into effect the government will have to reimburse the paid duties. Therefore there is no incentive on holding back clearance.