The U.S. filed its opening brief on June 24 in its appeal of the Court of International Trade ruling vacating the executive orders implementing tariffs under the International Emergency Economic Powers Act, arguing that CIT got it wrong "at every turn." The government told the U.S. Court of Appeals for the Federal Circuit that the trade court "properly did not question whether IEEPA authorizes as a general matter," though the court improperly suggested that "giving effect to IEEPA’s text would create constitutional concerns, invoking the nondelegation doctrine" (V.O.S. Selections v. Donald J. Trump, Fed. Cir. # 25-1812).
The International Emergency Economic Powers Act lets the president suspend the de minimis threshold to respond to a national emergency notwithstanding Section 321's limits on eliminating or modifying the threshold, the U.S. argued. Urging the Court of International Trade to side with the government in importer Detroit Axle's suit against the elimination of the de minimis threshold on Chinese goods, the U.S. said the IEEPA's language lets the president void pre-existing privileges granted by other authorities, such as Section 321 (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
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The Court of International Trade on June 16 denied importer Detroit Axle's request that the trade court reconsider its briefing schedule on its motion for a preliminary injunction against President Donald Trump's decision to eliminate the de minimis threshold for goods from China. As a result, the U.S. reply to the PI motion is due June 20 and the importer's reply is due on July 7 (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
The Court of International Trade in a confidential order on June 5 sustained in part and remanded in part the Commerce Department's final results in the new shipper review of the antidumping duty order on frozen fish fillets from Vietnam. AD petitioner Catfish Farmers of America brought the suit to challenge the 2022-23 new shipper review of Vietnamese exporter Co May Import Export Company, which granted the company a de minimis dumping rate. The petitioner argued Co May didn't actually make a bona fide sale in the U.S. during the review period (Catfish Farmers of America v. U.S., CIT # 24-00126).
The Court of International Trade denied the U.S. motion to stay proceedings in a case challenging the elimination of the de minimis threshold for Chinese products. Detroit Axle, the importer challenging the government, then filed an emergency motion requesting the dates ordered by CIT be moved earlier to "preserve Detroit Axle’s ability to obtain meaningful relief" (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
The U.S. has asked the Court of International Trade to stay the remaining cases on its docket challenging tariffs imposed under the International Emergency Economic Powers Act pending its appeal of the trade court's recent decision vacating all tariffs thus far imposed under IEEPA. The government argued that a stay is "warranted," since "an appellate ruling would be binding on plaintiffs’ claims" at CIT and resources will be spared in not having to litigate the same issues (Princess Awesome v. United States, CIT # 25-00078) (Emily Ley Paper, d/b/a Simplified v. United States, CIT # 25-00096).
Trade Law Daily is providing readers with the top stories from last week, in case you missed them. All articles can be found by searching on the title or by clicking on the hyperlinked reference number.
The U.S. and Detroit Axle, an importer challenging the elimination of the de minimis threshold for Chinese products, sparred at the Court of International Trade on whether to stay the company's case in light of the trade court's decision to vacate all tariff executive orders issued by President Donald Trump under the International Emergency Economic Powers Act (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
The end of reciprocal tariffs and tariffs imposed over fentanyl smuggling from China, Canada and Mexico is on hold until an appellate court decides if the use of the International Emergency Economic Powers Act was illegal for those purposes.