Overview

• An 11-judge Federal Circuit ruled 7-4 that the International Emergency Economic Powers Act’s authority to “regulate” imports does not permit tariffs, largely affirming a May ruling by the Court of International Trade.
• The decision covers April’s global “reciprocal” tariffs and separate February levies on China, Canada and Mexico, but does not touch tariffs imposed under other statutes such as Section 232 or Section 301.
• The court kept the challenged tariffs in place through Oct. 14 and directed the lower court to revisit the scope of remedies in light of recent Supreme Court limits on nationwide injunctions.
• The White House blasted the ruling and said it will seek reversal, stressing that the tariffs remain in effect during the stay.
• If the measures are ultimately invalidated, companies could pursue refunds of duties already paid, leaving financial, market and diplomatic questions unresolved.