U.S. Appeals Court Decision Keeps Trump Administration Tariffs in Effect

June 2, 2025 | As previously shared in an email update to the full Toy Association membership, the U.S. Court of Appeals for the Federal Circuit has granted a stay on the U.S. Court of International Trade’s May 28 ruling that President Trump’s tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), are unlawful. This stay places a temporary pause on the enforcement of the permanent injunction, allowing U.S. Customs to resume collecting IEEPA tariffs.

In its ruling, the Court of Appeals gave the plaintiffs until June 5 to file a response. The Trump Administration will then have until June 9 to reply.

The Court of International Trade’s decision covered the April 2 worldwide reciprocal tariffs, as well as tariffs imposed on Mexico, Canada, and China related to immigration and fentanyl concerns. The ruling did not affect the Section 232 or Section 301 tariffs.

Following the lower court’s ruling, the Trump Administration immediately appealed the decision and requested the stay, which was granted by the U.S. Court of Appeals for the Federal Circuit. The temporary stay puts the injunction on hold until further notice, maintaining the status quo for the collection of IEEPA tariffs while the legal process continues.

The Toy Association will continue to monitor the ongoing litigation and provide updates as new developments emerge.