May 2025: Tariff Update
On May 29, 2025, the U.S. Court of International Trade (CIT) issued a landmark ruling invalidating tariffs imposed by the Trump Administration under the International Emergency Economic Powers Act (IEEPA). The Court found that the President’s use of IEEPA to impose “Worldwide and Retaliatory Tariffs” and “Trafficking Tariffs” exceeded statutory authority and violated constitutional principles separating legislative and executive powers.
- The CIT’s permanent injunction applies to all IEEPA-based tariffs imposed to date.
- The U.S. Government has ten days to issue administrative orders to implement the injunction.
- The decision does not affect tariffs and investigations under other U.S. statutes, such as Sections 232 and 301 (including the steel and aluminum and auto tariffs and investigations on lumber, film and pharmaceuticals)
- The US Administration has motioned to stay the proceedings as they intend to appeal.
- While the legal process is lengthy and could take more than a year, we recommend that importers of record keep a record of any tariffs they have paid if there is an opportunity to seek refunds in the future.
The Nova Scotia Department of Intergovernmental Affairs continues monitoring these developments closely to understand their implications for Nova Scotia exporters and supply chain partners.
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