While Court Rules Against the Use of IEEPA Tariffs, Appeals Process Continues as Tariffs Remain
Last week, a U.S. appeals court ruled that the Trump Administration’s tariffs under the International Emergency Economic Powers Act (IEEPA) are illegal and delayed the injunction’s effect until October 14 to allow for a U.S. Supreme Court Appeal. This means that the reciprocal tariffs on all countries and the fentanyl tariffs on China, Canada, and Mexico remain in effect until Oct. 14. The administration’s use of Section 232 tariffs on aluminum, steel, copper, and other sectors were not affected by the ruling and remain in effect.
This ruling followed and upheld many aspects of the U.S. Court of International Trade (CIT)’s May 28 sweeping ruling that struck down the president’s use of the IEEPA to impose broad-based tariffs. The CIT found that the president had exceeded his authority under the statute, invalidating a 10% universal tariff on imports as well as higher rates targeting goods from China, Canada, and Mexico. The decision emphasized that while IEEPA does grant the president emergency powers, it does not provide “unbounded tariff authority,” which the Constitution expressly delegates to Congress.
The U.S. Supreme Court’s first conference is September 29, which is when justices will review petitions such as the IEEPA appeal, and could expedite its review and proceedings given the October 14 deadline.
The recreational boating industry, which relies on a stable, transparent global trade environment, is closely watching these legal developments.
While NMMA supports policies that protect U.S. manufacturers and strengthen domestic production, we continue to advocate for a nuanced and targeted trade approach—one that recognizes the unique needs of the recreational boating sector.
NMMA will continue to monitor the court cases and appeal to the U.S. Supreme Court. As the legal framework for trade policy continues to evolve, we remain committed to keeping members informed and ensuring that the voice of recreational boating is heard in Washington.
For more information, or to provide input, contact Clay Crabtree, NMMA Senior Director of Public Policy, at [email protected].