On May 28, 2025, the Court of International Trade (CIT) ruled unanimously to end President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs. The three-judge panel found IEEPA did not grant unbound authority to tax imports from nearly every country around the world.
No president had tried to use 1977’s IEEPA for tariffs perhaps because it doesn’t mention them, though in 1971 President Richard Nixon used its predecessor, the Trade with the Enemy Act, to impose a 10% supplemental duty on all dutiable articles imported into the U.S. Regardless, the CIT found Trump’s tariffs “exceed any authority granted” under the current statute and moved to vacate and permanently end them, giving the executive branch 10 days to do so.
The Administration immediately appealed and on May 29 the U.S. Court of Appeals for DC reinstated the IEEPA tariffs, ordering plaintiffs to respond by June 5 and the Administration by June 9. While this was happening a second federal court ruled against the IEEPA tariffs but stayed its order for 14 days so that parties could seek review in the Court of Appeals.
IEEPA tariffs in flux are the “fentanyl” tariffs on Canada, Mexico, and China, and reciprocal tariffs on China and some 200 other countries that have been lowered to 10% until July 9.
Also in flux are steel and aluminum tariffs which, on May 30, President Trump said would go to 50% from 25% during his visit to Pittsburgh to announce the deal between U.S. Steel and Nippon Steel Corp. Trump later posted the new rates would become “effective Wednesday, June 4.”
The One Big Beautiful Bill Act
On May 22, the House passed the One Big Beautiful Bill Act (H.R. 1) on a 215-214 party-line vote. Control of the White House and Congress allows Republicans to use Budget Act reconciliation for major tax and spending changes because it can’t be filibustered and needs only Republican votes for passage. But a challenge for Republicans is finding budget offsets to pay for tax cut and spending programs. House Republicans made cuts (reforms) to Medicaid and numerous Inflation Reduction Act programs, and the bill is now being worked on in the Senate.
H.R. 1 would make the 2017 Tax Cuts and Jobs Act permanent; eliminate taxes on tips and overtime; provide a deduction for car loan interest and an additional $4,000 deduction for seniors; and increase the SALT deduction cap to $40,000. Key tax provisions for IHA members are:
- The IRC Sec. 199A deduction for pass-through businesses (LLCs, partnerships, etc.), is increased from 20% to 23% and made permanent.
- The Sec. 168(k) 100% bonus depreciation is restored for 20-year depreciable items from 2025-29.
- The Sec. 179 expensing cap for 37-year depreciable capital investments rises to $2.5 million if made during or after 2025, and the starting point for its phase-out increases to $4 million.
- The Sec. 174 immediate expensing for research and development (R&D) is restored.
- The estate tax exemption increases to $15 million and is made permanent.
