Update on IEEPA Tariffs and Legal Developments: In the past two days, there have been significant legal developments concerning the tariffs imposed under the IEEPA/International Emergency Economic Powers Act. Yesterday, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay of the U.S. Court of International Trade’s (CIT) recent decision to lift those tariffs based on a unanimous bipartisan panel of judges determined that the tariffs exceeded the authority available under IEEPA. As a result, the IEEPA tariffs—including those on China, Canada, and Mexico aimed at addressing the fentanyl crisis—will remain in effect at least until June 9, while the appeals court reviews the government’s emergency motion to maintain them during the appeal process. The Federal Circuit did not provide a rationale for its administrative stay, leaving it unclear whether the court supports the government's argument that the CIT’s ruling could harm U.S. foreign policy. The government had quickly appealed the CIT’s decision, seeking stays from both the CIT and the Federal Circuit, citing risks to international diplomacy. In a separate case, a judge in the U.S. District Court for the District of Columbia granted a preliminary injunction preventing the government from collecting fentanyl-related tariffs from the plaintiffs in that case. The judge found that IEEPA does not authorize such tariffs on China or allow reciprocal tariffs—though tariffs on Canada and Mexico were not addressed. The government has also appealed that decision.
As we have previously reported, importers are still required to pay IEEPA tariffs for now. The CIT’s 10-day administrative window, combined with the Federal Circuit’s stay, keeps the current tariff regime in place. Briefs are due by June 5 (plaintiffs) and June 9 (government), with a decision on the stay expected shortly after.
In the meantime, trade negotiations may lose some urgency, and the administration may begin considering alternative legal frameworks—such as Section 122 of the Trade Act of 1974 or Section 301 investigations—to preserve the existing tariff structure if the IEEPA basis is ultimately struck down. Statements from the White House proclaim a continued dedication to the tariff regime and the administration appears ready to find any possible avenue to support tariffs.
We will continue to monitor developments and provide timely updates.
Services from Mediterranean: The Premier Alliance and Ocean Alliance ocean carrier network will have a reduced number of sailings in June, with schedules running every 10 to 15 days instead of weekly. The limited sailings may put pressure on cargo flows from the Southern European ports in Italy, Spain, and Southern France. The artificial constriction in space may support carriers implementing PSS/Peak Season Surcharges, such as those published by MSC for end of June. We will monitor the situation and update accordingly. For further details on schedules, please feel free to contact WSSA.
Algeciras Spain Work Stoppage: The Association of Container Transport Bay of Algeciras (ATCBA) announced yesterday that it will suspend container transport services at the Port of Algeciras on June 5th, 6th, and 7th. This protest is in response to the excessively long wait times their trucks face at the port terminals—a situation the association describes as unsustainable for its members. Our team is working to mitigate any subsequent delays as much as possible due to this strike action.
Manzanillo Mexico Port Disruption: Manzanillo Port continues to experience disruption due to customs strike activity. Earlier this week, the AAAPUMAC Association put out a notice that all import cargo loading in the North and South zones must halt due to the high volume of vehicular traffic impacting transport on both internal and external roadways. This preventive measure was implemented looking to mitigate further complications, but some delays should be expected due to this situation. Source: Albatrans Mexico
Chile Pass Closure: Winter is in full swing in the Southern Hemisphere, and with it brings the snowfall that impacts truck transport. The pass connecting Chile and Argentina was closed Tuesday due to inclement weather in the mountain region, and has not yet reopened. We will continue to provide updates as available.
Seattle-Tacoma Port Tour and Market Briefing: We have two spots remaining for our event at the Pacific Northwest port. Should you be interested in seeing the port in action and information on the port and terminals as well as a logistics market update, please let us know.