US Tariff Future Hangs in Balance as Court Delays Ruling on 'Trump Tariffs'

An emergency appeal has reinstated trade duties under IEEPA, leaving global businesses in limbo for up to 18 months

 

The Ministry of Commerce is closely monitoring the volatile landscape of US trade policy after an emergency order from the US Court of Appeals for the Federal Circuit (CAFC) temporarily suspended a previous ruling by the Court of International Trade (CIT).

 

This decision allows the United States to continue collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA), prompting the Ministry to advise businesses to brace for ongoing market fluctuations.

 

Poonpong Naiyanapakorn, Director-General of the Trade Policy and Strategy Office and spokesperson for the Ministry of Commerce, highlighted the renewed uncertainty surrounding US tariff measures.

 

This follows the CAFC's approval of an emergency request from the US government to keep the existing tariff measures in place for the time being.
  

Key Chronology of Events:

28th May 2025: The Court of International Trade (CIT) issued an order to halt tariff measures enforced under the authority of the International Emergency Economic Powers Act (IEEPA). The court had ruled that the US administration had exceeded its constitutional powers. This order covered tariffs levied against China, Canada, and Mexico concerning fentanyl-related substances, as well as reciprocal tariffs applied to trading partners worldwide.

 

29th May 2025: The US Department of Justice promptly appealed the CIT's order to the CAFC. Concurrently, it filed an emergency motion seeking a stay of the CIT's ruling during the appeal process.

 

Same day (29th May 2025): The CAFC granted the emergency motion. This action temporarily suspends the CIT's order, ensuring that the administration's tariff measures remain in force until the CAFC completes its full review of the appeal.
  

The Road Ahead and Outlook

The CAFC has given the US administration until 9th June 2025 to submit its complete arguments.

 

In the interim, US Customs and Border Protection (CBP) will continue to collect import duties until a final judgment is rendered.

 

The appellate court's review process is anticipated to take an average of six to eighteen months.

 

Poonpong further commented that even if the CAFC were to eventually uphold the CIT's initial decision, the US administration possesses other legal instruments to implement tariff measures.

 

These include:

Section 301 (The Trade Act of 1974): Empowers the US Trade Representative (USTR) to investigate and retaliate against unfair trade practices by trading partners.

Section 232 (The Trade Expansion Act of 1962): Authorises measures to protect national security.

Section 338 (The Tariff Act of 1930): Grants the President the power to impose customs duties of up to 50% on countries discriminating against US goods, subject to prior investigation and report from the US International Trade Commission (USITC).

 

The Ministry of Commerce will maintain close vigilance on developments. However, given the protracted nature of judicial proceedings, businesses are strongly advised to prepare for continued uncertainty and potential impacts in the foreseeable future.

(2025/06/04-00:00)