On May 28, 2025, the United States Court of International Trade (USCIT) ruled that the expansive global trade tariffs introduced by President Donald Trump under the United States International Emergency Economic Powers Act (IEEPA)—a national security statute that gives the president authority to control economic transactions in some emergencies—were unlawful and should be withdrawn (the USCIT Ruling). These tariffs are one part of a broader series of trade measures impacting Canada since President Trump took office earlier this year.
The USCIT Ruling arose from two related lawsuits, one filed on behalf of a group of small companies in the United States impacted by the tariffs on Canadian imports, and another, brought by a coalition of state governments who claimed the tariffs harmed their local economies.
Immediately after the USCIT Ruling was issued, the Trump administration filed to appeal the ruling to the US Court of Appeals for the Federal Circuit (USCAFC). On May 29, 2025, the USCAFC granted an immediate injunction blocking the removal of tariffs issued under the IEEPA, effectively pausing the USCIT Ruling until the USCAFC hears the appeal with arguments from all parties.
Morgan Camley, KC, and Ivy Yang discuss the potential implications of this development and what Canadian businesses should watch for as the appeal process moves forward. Read the full insight on our website here.