The U.S. District Court for the District of Columbia on June 3 stayed its decision finding that the International Emergency Economic Powers Act doesn't provide for tariffs, pending the government's appeal of the ruling to the U.S. Court of Appeals for the D.C. Circuit. Judge Rudolph Contreras said a stay is "appropriate to protect the President’s ability to identify and respond to threats to the U.S. economy and national security" (Learning Resources v. Trump, D.D.C. # 25-01248).
Georgetown University law professor Jennifer Hillman said that while she expects the U.S. Court of Appeals for the Federal Circuit to take months to decide if the tariff actions under emergency powers weren't legal, the court might not stay the vacation of the orders during that time.
The U.S. and Detroit Axle, an importer challenging the elimination of the de minimis threshold for Chinese products, sparred at the Court of International Trade on whether to stay the company's case in light of the trade court's decision to vacate all tariff executive orders issued by President Donald Trump under the International Emergency Economic Powers Act (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
The District Court for Northern California on June 3 dismissed California's challenge to tariff action taken under the International Emergency Economic Powers Act, finding that the Court of International Trade has exclusive jurisdiction to hear the matter under Section 1581(i), which says only CIT will hear cases arising out of U.S. laws providing for tariffs. Judge Jacqueline Scott Corley said President Donald Trump's executive orders implementing the tariffs are laws of the U.S. for purposes of Section 1581(i), since they modify the Harmonized Tariff Schedule, and the law implementing the HTS, Section 3004, says presidential action modifying the HTS is part of the HTS. Scott then dismissed the case instead of transferring, per California's request, to let the state appeal the decision.
The District Court for the District of Columbia on June 3 stayed its decision finding that the International Economic Emergency Powers Act doesn't confer tariff-setting authority and declaring that all tariff action taken under IEEPA is illegal. Judge Rudolph Contreras suspended his preliminary injunction on the collection of the tariffs from the plaintiffs, two small importers, as well as the "accompanying memorandum opinion," which said IEEPA doesn't provide for tariffs. The ruling is stayed pending the government's appeal of the decision to the U.S. Court of Appeals for the D.C. Circuit. The judge said a stay is "appropriate to protect the President’s ability to identify and respond to threats to the U.S. economy and national security."
The U.S. on June 2 asked the U.S. Court of Appeals for the D.C. Circuit for an emergency stay of the D.C. district court's decision last week finding that the International Emergency Economic Powers Act doesn't confer tariff-setting authority (see 2505290037). The government said that while the district court's preliminary injunction only extends to the plaintiffs, two small importers, the ruling undermines the president's ability to negotiate trade deals and wield broader diplomatic power (Learning Resources v. Donald J. Trump, D.C. Cir. # 25-5202).
The following lawsuit was filed recently at the Court of International Trade:
The Court of International Trade gave plaintiffs in the two successful challenges to President Donald Trump's tariff action taken under the International Emergency Economic Powers Act more time to respond to the government's motion to stay the trade court's decision to vacate Trump's executive orders imposing the tariffs (V.O.S. Selections v. Donald J. Trump, Fed. Cir. # 25-1812).
Following decisions from the Court of International Trade and the U.S. District Court for the District of Columbia invalidating tariff action taken under the International Emergency Economic Powers Act, questions remain about which court has the right view on whether the trade court has exclusive jurisdiction to hear cases on IEEPA tariffs. Relatedly, the issue affects where importers may file suit to contest the imposition of IEEPA tariffs or seek refunds of duties paid under tariff action found to be unlawful.
Chapter1, a small Nevada-based importer represented by boutique litigation firm Gerstein Harrow, filed a case at the Court of International Trade on May 29 seeking class certification for all importers that have paid tariffs recently invalidated by the trade court. The suit, if successful in challenging the tariffs and establishing class certification, would provide refunds for all companies that have paid tariffs imposed under the International Emergency Economic Powers Act (Chapter1 v. United States, CIT # 25-00097).