Court Strikes Down U.S. “Reciprocal” Tariffs, Administration To Appeal

Late yesterday, the United States Court of International Trade struck down much of the Trump administration’s recent tariffs, asserting that the levies were wrongfully imposed under the International Emergency Economic Powers Act (IEEPA). The plaintiffs included wine importer VOS Selections, along with a coalition of 12 states. The victory for importers could be short-lived, however, as the administration has already appealed the decision.

For now, the U.S. is enjoined from collecting the 10% to 50% tariffs imposed on imports from 57 countries, as well as the 25% duties on some Canadian and Mexican products (beverage alcohol from Canada and Mexico has been excluded from those tariffs along with other products covered by the USMCA trade deal). But that could shortly reverse, if the government is granted an emergency stay of the ruling. If that happens, the tariffs would remain in effect throughout the administration’s appeal process.

In its decision, the court emphasized that tariff power resides with Congress, and that the administration overstepped its authority in levying the tariffs, despite its assertion of doing so under a declared national emergency. The ruling is also retroactive, meaning tariffs already collected must be refunded if the administration loses its appeal.

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