On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit issued a significant decision in V.O.S. Selections, Inc. v. Trump, holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The Court found that President Trump exceeded his statutory authority by using IEEPA to justify sweeping tariffs on imports from China, Canada, Mexico, and other nations in response to national emergencies related to fentanyl trafficking and trade imbalances. In a 7–4 ruling, the court concluded that the power to "regulate importation" under IEEPA does not include the power to tax via tariff, a power constitutionally reserved to Congress.

While the ruling invalidates the legal basis for the "Trafficking" and "Reciprocal" tariffs, the Court stopped short of reinstating the nationwide injunction previously issued by the Court of International Trade (CIT). Instead, the Federal Circuit remanded the case back to CIT to reassess the scope of injunctive relief in light of the Supreme Court’s recent decision in Trump v. CASA, which restricts the use of nationwide injunctions.

As a result, U.S. Customs and Border Protection will continue collecting the challenged tariffs, pending further legal developments. The Court also delayed issuance of its mandate until October 14, 2025, allowing time for a potential appeal to the Supreme Court.

The ruling reinforces constitutional limits on executive trade authority and that tariff power remains firmly within Congress's purview. Importers should be aware that although these tariffs are still being collected, their legal foundation is now highly uncertain.

Importers should continue monitoring this case closely and consult with a trade professional about bond exposure, duty rates and HTS Classification, and potential refund opportunities if the tariffs are ultimately struck down.

A copy of the Court’s opinion can be found here.

A new U.S. executive order delays the cancellation of the de minimis exemption. This order announced a process to allow de minimis entries through Customs with a 10% tariff on those movements. This program will impact the express consignment carriers but will have no impact on Kuehne+Nagel services.