Overview

• An 11-judge Federal Circuit panel signaled deep doubt on July 31 that the International Emergency Economic Powers Act authorizes sweeping import duties.
• The court paused the U.S. Court of International Trade’s injunction, maintaining the 10 percent “Liberation Day” levies on dozens of trading partners.
• Challengers argue that Article I vests tariff power exclusively in Congress and that IEEPA was meant for narrow sanctions, not broad rate setting.
• The administration is evaluating legislative codification of the tariffs and alternative statutes, including a 1962 national security trade law, to preserve import duties if IEEPA authority fails.
• Importers are preparing to seek refunds through U.S. Customs and Border Protection and, if necessary, appeal to the Court of International Trade after a final ruling.