Despite a federal court ruling that the duties are unlawful, importers must continue paying tariffs imposed under the International Emergency Economic Powers Act. This move adds to conflicting court decisions this week that have created legal uncertainty.
On May 28, the U.S. Court of International Trade ruled that IEEPA tariffs are unlawful, stating that President Trump exceeded his authority by imposing the duties. However, the U.S. Court of Appeals for the Federal Circuit granted a temporary stay, keeping the tariffs in effect during the appeal process.
According to an Auto Care Association blog post, a separate ruling by the U.S. District Court for the District of Columbia on May 29 questioned the trade court's jurisdiction over IEEPA matters. Judge Rudolph Contreras wrote: "This case is not about tariffs qua tariffs. It is about whether IEEPA enables the president to unilaterally impose, revoke, pause, reinstate, and adjust tariffs to reorder the global economy. The Court agrees with Plaintiffs that it does not."
Continued Compliance Required
Despite legal challenges, importers must continue filing entries with IEEPA tariffs applied and cannot submit Post Summary Corrections to remove duties.
Potential Refunds on Hold
If the tariffs are eventually removed, importers may be eligible for refunds on duties paid under IEEPA fentanyl tariffs from China, fentanyl and border tariffs from Mexico and Canada, and reciprocal tariffs from all countries. Trade attorneys recommend importers track all entries with IEEPA duties and monitor liquidation dates. Any potential refunds likely won't be processed until late 2026 or 2027.
