On May 28, the U.S. Court of International Trade (CIT) ruled that the fentanyl and reciprocal tariffs imposed on imports from China, Canada, Mexico, and other countries were unlawful under the law cited by the U.S. government—the International Emergency Economic Powers Act (IEEPA).
🧑⚖️ The Case: V.O.S Selections Inc. et al v. United States, Slip Op. 25-66
📜 The Ruling: IEEPA doesn’t give the President the legal authority to impose these tariffs.
What’s Affected:
- 🚫 20% fentanyl tariffs on Chinese goods
- 🚫 25% tariffs on non-USMCA goods from Canada & Mexico
- 🚫 10% global reciprocal tariffs
- 🚫 Country-specific higher tariffs scheduled for July 9
What’s Not Affected:
- ✅ Section 232 tariffs (e.g., on steel, aluminum)
- ✅ Section 301 tariffs from the Trump era (on Chinese goods)
What Happens Next?
- The U.S. government has already appealed.
- For now, all tariffs remain in effect until the appeals process plays out.
- Importers should continue paying duties and monitor their entries.
- No immediate action is needed to claim refunds, but protests may be required later after liquidation.
📌 Stay tuned for updates from customs experts as this case moves forward.
