Overview

• In a 7–4 en banc decision, the Federal Circuit held that IEEPA’s authorization to regulate imports does not permit the “reciprocal” and “trafficking” tariffs.
• The court stayed its ruling until Oct. 14, keeping the levies in effect while the administration prepares a Supreme Court appeal.
• The decision largely affirms a May ruling by the U.S. Court of International Trade and consolidates challenges brought by five small businesses and 12 states.
• Tariffs imposed under other statutes, including Section 232 duties on steel and aluminum, are unaffected by the ruling.
• The panel also remanded for the lower court to reconsider the scope of nationwide relief, as government filings warn that unwinding the levies could disrupt negotiations and prompt refund claims.