The Court of International Trade (CIT), in Atmus Filtration, Inc. v. United States, ordered US Customs and Border Protection (CBP) to begin liquidating all unliquidated entries that were subject to the International Emergency Economic Powers Act (IEEPA) tariffs without applying those duties and to reliquidate any entries whose liquidations are not yet final on the same basis. This follows the Supreme Court’s February 20 decision in Learning Resources, Inc. v. Trump, which held that IEEPA does not authorize the imposition of tariffs, rendering the duties unlawful from the outset.
The Government is expected to appeal immediately and seek a stay from the Federal Circuit; a stay is not automatic and must satisfy the traditional four-factor test, including a showing of likely success and irreparable harm. If the Federal Circuit does not grant a stay, CBP will be obligated to begin implementing the CIT’s order and issue refunds promptly. Any return to the Supreme Court would likely center
