On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit, ruled by a 7–4 vote that the President lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose the IEEPA Reciprocal and Fentanyl tariffs. The court affirmed the Court of International Trade’s earlier finding that IEEPA does not authorize such measures, explaining that the tariffs were unbounded in scope, amount, and duration, and were applied at ever-changing rates beyond those established in the Harmonized Tariff Schedule.
Despite the ruling, the tariffs continue to be in effect for now. U.S. CBP continues to collect duties while the case proceeds, and refunds will not be automatic even if the Supreme Court ultimately affirms the decisions striking down the tariffs. Importers who wish to preserve their rights to potential refunds must act proactively, as protests must be filed within 180 days of liquidation for each entry on which they were charged IEEPA tariffs. Companies may also consider seeking extensions of liquidation where possible to protect their interests.
On September 9, 2025, the Supreme Court agreed to hear, on an expedited schedule, two consolidated court challenges to the IEEPA tariffs imposed under the current administration. The Court’s decision will likely determine the legality and future of these tariffs. As a result, the next developments may come from the Supreme Court, and the scope of the permanent injunction issued by the CIT will not be reconsidered until that process is complete.
In the meantime, importers should closely monitor the liquidation of their entries subject to IEEPA tariffs and be prepared to file timely protests to safeguard potential refund claims. Many legal advisors are recommending that importers take proactive steps now to preserve their ability to recover duties assessed under the IEEPA tariffs. Importers may wish to hire legal counsel to protect their interests or consider taking the following actions:
Review customs entries to identify those affected by IEEPA tariffs.
Track liquidation dates for all affected entries.
Request extensions of liquidation and confirm with CBP if and when the extensions are granted.
File protests for any entries already liquidated within 180 days of liquidation.
o Informal (Type 11) entries liquidate at the time of entry summary.
o Most other entries typically liquidate within 314 days of release.
Request that any protests be stayed pending the outcome of the IEEPA tariff litigation.
Consider bond implications: Any entries that have final liquidation suspended under either method will be considered as open liabilities on your bond, which may cause a stacking or collateral situation to be compounded.