The Vision Council (TVC) has issued an update on the legal status of tariffs imposed under the International Emergency Economic Powers Act (IEEPA), following recent court actions affecting their collection.

On May 28, the U.S. Court of International Trade (CIT) ruled to permanently prohibit the collection of these tariffs. However, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay on May 29, allowing the government to continue collecting the duties while an appeal moves forward.

As a result of the stay, the following tariffs remain in effect until further notice:

• A 25% tariff on certain goods from Mexico and Canada
• A 20% tariff on certain goods from China
• “Reciprocal” tariffs at 10%, with scheduled increases to higher country-specific rates in July

The appeals court has set a briefing schedule, with plaintiffs required to file their response by June 5 and the government’s reply due by June 9. A decision on whether to implement a more extended stay is expected after these filings. If granted, tariff collection would continue throughout the appeal process, which may ultimately reach the U.S. Supreme Court.

The current developments do not affect the following:

• Section 301 tariffs on Chinese goods, which remain active under a separate legal authority and appeal
• Section 232 duties on steel, aluminum, automobiles, and automotive parts

TVC offers several resources to assist members in navigating the changing tariff landscape, including a Tariff Dashboard, policy updates, and legal guidance.