Trump’s Tariffs KO’d by Court (for Now)

By Rob Bates | May 29, 2025

On May 28, the U.S. Court of International Trade ruled that President Trump exceeded his authority when he imposed tariffs on nearly all imports entering the United States.

The unanimous 3-0 ruling gives the Trump administration 10 days to halt the current 10% levies on virtually all imports coming to the United States. It also eliminates the steeper tariffs unveiled on April 2—which are currently under a 90-day pause—as well as new levies against China, Canada, and Mexico.

Those tariffs were all imposed under the International Emergency Economic Powers Act (IEEPA), which gives the president authority to impose levies during economic emergencies.

Tariffs on certain steel products, as well as any duties that were put in place prior to the current Trump administration, were enacted under different laws and will remain in place.

“This story is not over,” warns Sara Yood, president and CEO of the Jewelers Vigilance Committee.

She notes that the administration has already indicated it will appeal the decision to a higher court. If it stays the trade court’s order, the tariffs would be allowed to continue. In addition, the tariffs will likely remain in place for the next 10 days, which overlaps with the start of the JCK and Luxury shows.

“This ruling is coming at a challenging time for us because people are bringing goods in for the shows,” Yood says. “You still may have to pay duties while this all gets sorted out. However, it’s certainly progress at eliminating the tariffs that are affecting the trade and causing instability in the industry.”

She advises industry members to “pay attention to the news, and keep really, really good records of tariff payments that you’re making now, to preserve rights for potential refunds.”

Whether the government will refund tariffs already paid—and how that will be handled—is one of several issues up in the air, Yood says.

A bulletin from trade attorney Erik Smithweiss, sent out by the Accessories Council, advised that “no specific action is required by importers to preserve rights to potential refunds. However, depending upon the length of an appeal and future developments, it will likely become necessary for importers to [take action] to preserve refund rights.”

Industry groups are hoping the situation gets sorted out soon.

Jewelers of America president and CEO David Bonaparte tells JCK via email: “Given that the Trump administration has already filed an appeal and a request to stay the decision, it is unclear what the immediate impact will be on jewelry businesses. Jewelers of America is hopeful that our members and the industry at large will have some relief in the coming days, but we know the tariffs are central to the president’s agenda and Jewelers of America will continue to pressure officials on exemptions for jewelers that depend on the importation of goods to run their businesses.”

Jonathan Gold, the National Retail Federation’s vice president of supply chain and customs policy, said in a statement, “The ruling by the U.S. Court of International Trade blocking most of President Trump’s tariffs is just another chapter in this difficult journey toward a clear, consistent and strategic trade policy. The implementation of the IEEPA tariffs on our trading partners and their reciprocal actions against the U.S. have made it increasingly difficult for retail businesses, large and small, to operate with the clarity they need to invest and grow in order to best serve their customers and communities.”

The trade court’s ruling, issued in response to a challenge filed by the libertarian Liberty Justice Center on behalf of five small businesses, contended that the IEEPA does not apply to the “emergencies” cited by Trump, including the trade deficit and the fentanyl crisis.

“The question…before the court is whether the International Emergency Economic Powers Act of 1977 [allows the president to] impose unlimited tariffs on goods from nearly every country in the world,” it said. “The court does not read IEEPA to confer such unbounded authority.”

White House deputy press secretary Kush Desai told the BBC: “”It is not for unelected judges to decide how to properly address a national emergency.”

(Photo: Getty Images)