by Manal Barakat, SeaNewsEditor

Last week, the US Court of Appeals for the Federal Circuit ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President the authority to impose tariffs.

This decision, announced on 29 August, concluded that President Trump exceeded his statutory powers by using IEEPA to justify extensive tariffs on imports from various countries in response to national emergencies.

The court's 7-4 ruling emphasised that the power to regulate importation under IEEPA does not encompass the power to tax via tariffs, a power constitutionally reserved for Congress.

While this ruling invalidates the legal basis for reciprocal tariffs, the case was remanded back to the Court of International Trade (CIT) for reassessment.

This means that the US Customs and Border Protection will continue to collect the challenged tariffs pending further legal developments.

The court also delayed the issuance of its mandate until 14 October 2025, allowing time for a potential appeal to the Supreme Court.

In response, Trump has petitioned the US Supreme Court to reverse the court ruling.

Kuehne+Nagel is monitoring the situation closely and will report updates as they become available. Customers can also check the latest updates on our global trade and tariffs page for quick updates about the tariffs' overall development.