Editor’s note: In a demonstration of how quickly and how volatile the tariff status is, just two days after a U.S. Court of International Trade ruled to prohibit the tariffs, the Federal Circuit Court reinstated them temporarily. The Vision Council provides these important updates.
The Vision Council is providing an important update regarding the legal status of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Following the U.S. Court of International Trade’s (CIT) May 28 ruling that permanently prohibited these tariffs, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay on May 29, allowing the continued collection of the tariffs during the government’s appeal process.
Current Status of IEEPA Tariffs
As a result of the U.S. Court of Appeals for the Federal Circuit’s order, the following tariffs remain in effect until further notice.
- The 25 percent tariff on goods from Mexico and Canada
- The 20 percent tariff on goods from China
- “Reciprocal” tariffs currently at 10 percent, scheduled to increase to higher country-specific rates in July
What’s Next
The appeals court has set a briefing schedule, with plaintiffs required to respond by June 5 and the Trump administration to reply by June 9. A decision on whether to grant a more permanent stay is expected following these submissions. If granted, these tariffs will continue to be collected throughout the appeals process, which could ultimately reach the U.S. Supreme Court.
What to Know Today
- All previously established duties remain in effect
- Trade negotiations are ongoing and may affect current and future “reciprocal” tariff percentages
- This decision does not impact:
- Section 301 tariffs on Chinese goods, which remain in force under a separate statutory authority and are the subject of a separate legal appeal
- Section 232 duties on steel, aluminum, automobiles, and automobile parts
Given that there is no immediate change in IEEPA duties collection, The Vision Council will not update its Tariff Dashboard (available to members only) until further developments occur.
Resources for the Industry
In addition to its advocacy, The Vision Council offers a suite of resources to help members respond to the ongoing impacts of trade and tariff policy.
- Latest Tariff Developments: Ongoing updates on policies and actions affecting the optical industry.
- Tariff Dashboard: A simulator available to members of The Vision Council that models the financial implications of tariffs on imports.
- Industry Resources & Guidance: Country-specific duty explanations, archived webinar recordings, and more.
Feature image: Getty Images
