An Aug. 29 U.S. federal appeals court ruled that many recently imposed tariffs were illegal, including some affecting the pet food industry. This decision on the case, known as VOS Selection v. Trump, raises uncertainty into the already complex landscape of global trade.
The appeals court ruling related to a broad set of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). While the decision does not bring immediate relief, it has raised the prospect that billions of dollars in import duties could be reversed, or at least restructured, in the coming months. For pet food companies that rely on global supply chains, the ruling could eventually impact pricing, logistics and contract management.
In a Trade Talks with APPA session, Patrick O’Brien, chief marketing officer for the American Pet Products Association (APPA), and Rebecca Rizzuti, owner and head of Progressive Trade Consulting, discussed how the ruling could affect pricing, logistics and contract management for pet food companies.
First, O’Brien cautioned against premature action. Despite the high stakes, the legal process is far from resolved.
Appeals court rules against IEEPA-based tariffs
While the ruling represents a legal win for importers, it does not yet change the status quo, Rizzuti said. Although the court ruled the President lacked the authority to impose these tariffs under IEEPA, the tariffs remain in place at least until October 14.
"There was another avenue that the President could take this argument to, and that's the Supreme Court," she said.
This delay is due to a stay on the ruling’s implementation, which gives the U.S. government time to appeal to the Supreme Court. If the high court decides not to hear the case, the current stay could be lifted quickly, allowing for the tariffs to be rescinded. But if the Supreme Court takes up the case, the litigation could extend into late 2025 or beyond.
What is not changing
Importantly, the court’s decision does not impact all tariffs, she said. Section 232 tariffs on steel, aluminum and copper, which are based on national security justifications, remain unaffected. Additionally, some recent IEEPA-based tariffs, such as the 25% duty on certain imports from India, are not part of this ruling and will continue to apply.
For pet food companies sourcing from India, a 25% IEEPA tariff took effect, stacking on top of the existing 25% reciprocal tariff. That brings the total duty on affected products to 50%. That additional duty is not under review by the Court of Appeals, so there’s no clear end date, Rizzuti said.
End of de minimis for samples and small shipments
Another change affecting many pet food companies is the recent end of the de minimis threshold for duty-free imports. Previously, companies could bring in shipments valued under US$800 without facing formal customs entry procedures. That rule change, which first hit Chinese and Hong Kong shipments in May and expanded to all countries in August, is already altering day-to-day operations.
Companies should expect higher shipping costs and increased processing delays as couriers adjust to the new compliance demands, she said. Importers may also want to explore using the sample provision, which allows for duty-free imports under specific labeling and use conditions, but this requires careful documentation to stay compliant.
Pet food industry response strategies
The uncertainty surrounding the legal fate of IEEPA tariffs should prompt strategic planning not hasty changes, Rizzuti and O’Brien agreed.
React slowly, Rizzuti advised. Keep current on trade news, but wait for firm developments before making major operational shifts. And be cautious about overly creative solutions that could raise red flags with U.S. Customs.
Here are five immediate steps pet food companies can take to prepare:
- Track all tariff exposure
Review import entries with your customs broker to identify which shipments are subject to IEEPA or reciprocal tariffs. This documentation will be critical if refund opportunities emerge. - Verify product classifications
Rizzuti stressed the importance of correct Harmonized Tariff Schedule (HTS) codes. Improper classifications could also jeopardize any future claims for refunds or relief. - Prepare for potential refund scenarios
While no refund mechanism has been announced, importers should be audit-ready. Maintain a clean paper trail and flag relevant entries to simplify future claims. - Coordinate with suppliers and brokers
Update contracts and communication lines with logistics partners to manage potential changes in shipping timelines, costs and documentation requirements. Discuss how to handle new tariffs and make sure everyone understands updated legal obligations. - Time imports strategically
With multiple deadlines in play, including the October 14 appeals court stay and a November 10 tariff extension for China, timing shipments could save money. But companies should also be aware that peak-season shipping constraints and rate spikes are likely.
Many companies are eyeing that October 14 date, Rizzuti said. Some may wait to ship until after that, in case tariffs drop. Others will try to squeeze in before the November 10 China deadline. But everyone is watching the same calendar, which could create rate increases and delays.
Increased U.S. Customs and Border Protection scrutiny
Rizzuti also warned that U.S. Customs and Border Protection is closely monitoring import trends for signs of tariff circumvention. Companies that significantly changed declared values or sourcing patterns since April could face audits.
“They are looking at how people are importing things pre-April and post-April,” she said. “They're very good. The data that they have in place is very good, so they can run things through analytical tools to see where pricing has been changed drastically, and you're really going to be on the hook to try to explain those things.”
If you’re importing the same goods at suddenly lower prices, be prepared to justify that, she said. And make sure your documentation is in order, you could get just 30 to 90 days to respond to a customs inquiry.
The legal and policy landscape for tariffs is likely to remain turbulent well into 2026. For the U.S. pet food makers importing ingredients, packaging and finished goods from a variety of countries, that means ongoing risk management will be essential.
Keep your eyes on court developments, but don’t count on fast changes, Rizzuti advised. Stay informed, maintain compliance and plan ahead.
