Trade Regulation Updates

The Court of International Trade (CIT) has ruled that the International Emergency Economic Powers Act (IEEPA) and reciprocal fentanyl tariffs are unlawful, ordering the US government to vacate the challenged tariffs and have their operation “permanently enjoined.”

“IEEPA” Tariffs Ruled Unlawful:

• Fentanyl - China - All goods - 30% - In effect
• Fentanyl - Mexico - Most goods - 25% - In effect
• Fentanyl - Canada - Most goods - 25% - In effect
• Reciprocal - All countries - 10% - In effect
• Reciprocal - 60+ countries - Various % - Paused 

What this means:

• At this time, we’ve received no direction from US Customs and Border Protection (CBP) on any changes to the current processing and collection of these tariffs. Until further notice, duties tied to these tariffs will continue to be levied against applicable imports.
• The ruling states that the US Government must take measures to remove the tariffs within 10 days. However, the US administration has appealed this decision.
• Tariffs levied under Section 232 (steel, aluminum, and auto) were not a part of this ruling and remain in place.

We recognize the need for stability in international trade and how this ruling, along with the subsequent appeal, introduces more uncertainty into these transactions. We encourage all clients to review our blogs, Tariff Relief in Canada and Tariff Relief in the US, to understand the options available while these tariffs are in place, and to also subscribe to our Trading Post newsletter to stay on top of this and all future developing stories.

For more detailed information on the ruling, please find it here.