International Trade Court Overturns Trump Tariffs

Yesterday, the United States Court of International Trade struck down many of the tariffs President Trump imposed during his current term. The judgment from the Court rules that the International Emergency Economic Powers Act of 1977 (“IEEPA”) does not confer upon the president unbounded authority to impose tariffs, and sets aside certain challenged tariffs imposed on April 2, 2025. You can read the judgment here.

So what does this mean for project owners and developers, lenders, contractors, and suppliers?

Unfortunately, more uncertainty.

At the time of this post, the Trump Administration hasn’t announced whether it will appeal. If it does, the appeal would go to the Federal Circuit Court of Appeals, the same court that decides key government construction project cases.

Even if no appeal is taken, the administration could still repackage tariffs under other laws, like Sections 301 and 122 of the Trade Act of 1974. In other words, we’re not out of the woods yet.

What should you do now?

In today’s volatile tariff environment, construction industry participants must protect themselves contractually. Whether you’re locking in prices with suppliers, building escalation clauses into subcontracts, or negotiating contingencies with your lenders or owners, your risk strategy should match today’s legal and political uncertainty.

Need help drafting or revising your contracts with tariff risks in mind? I’ve got you covered. Check out my posts here and here. Better yet, please reach out—we’ll talk strategy (and probably coffee).

May 30, 2025 Update:

The administration has appealed the International Trade Court decision, and the Federal Court of Appeals has issued a temporary stay of the lower court’s decision—meaning the tariffs are, at the moment, still on. Meanwhile, a second federal court—the United States District Court for the District of Washington, D.C.—has also issued a ruling invalidating the tariffs. There, the Court stayed its ruling for fourteen days to allow the administration to seek an appeal (this time to the U.S. Court of Appeals for the District of Columbia Circuit). With two appeals in two different circuit courts, we may be on a fast-track to a Supreme Court appeal... which, as you can imagine, means more uncertainty for the time being.