The U.S. Court of Appeals for the Federal Circuit issued its decision in VOS Selections Inc. v. United States where the plaintiffs challenged the validity and legality of the Trump administration’s tariffs instituted under the International Emergency Powers Act (IEEPA). The full panel of circuit judges who heard oral argument on July 31, 2025, affirmed the Court of International Trade’s earlier decision that while IEEPA grants the executive “authority to ‘regulate’ imports” it “does not authorize the tariffs imposed by the Executive Orders. The majority opinion was issued by Judge Lourie who was joined by six other Circuit Judges, with additional views provided by four judges, and a dissent led by the remaining four judges on the panel.
In sum, the Court found that the majority of the IEEPA tariffs were illegal and the Trump administration had exceeded its authority in imposing such tariffs. The Court stated that it discerns “no clear congressional authorization by IEEPA for tariffs of the magnitude of the Reciprocal Tariffs and Trafficking Tariffs.” However, in determining whether the CIT abused its discretion in vacating and permanently enjoining the IEEPA executive orders, the Court remanded the case back to the CIT and instructed the lower court to specifically consider whether the universal and permanent injunction issued “comports with the standards outlined by the Supreme Court” in Trump v. CASA where the Supreme Court instructed lower courts to determine if individual plaintiffs met the four part test for injunctive relief.
In the interim, the CIT’s permanent injunction is vacated, and IEEPA Fentanyl and IEEPA Reciprocal tariffs will continue to be required to be posted pending remand to the CIT and further consideration by the Federal Circuit.
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