As previously shared in an email update to the full Toy Association membership, the U.S. Court of Appeals for the Federal Circuit has affirmed a lower court ruling (the May 28, 2025 U.S. Court of International Trade ruling) that tariffs imposed under the International Economic Emergency Powers Act (IEEPA) by the Trump Administration are unlawful. The decision limits the scope of presidential authority to levy broad import tariffs under emergency powers.

Implementation of the ruling has been delayed until October, allowing time for the Trump Administration to appeal to the U.S. Supreme Court. Until then, the IEEPA tariffs (global, reciprocal tariffs) remain in effect.

The ruling does not impact other tariffs, such as those imposed under Section 232 of the Trade Expansion Act or Section 301 of the Trade Act, which continue unchanged.

The Toy Association is closely monitoring the situation and will provide members with updates as the case proceeds to the U.S. Supreme Court.