Media Coverage
Source: Daily Journal
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
12.05.25
Federal prosecutors are stepping up investigations into tariff evasion and trade fraud, signaling a new era of stricter trade enforcement driven partly by national-security concerns. At the same time, the U.S. Supreme Court is reviewing whether the administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA) when imposing broad tariffs—an issue raised after lower courts ruled the statute does not authorize those measures. The dispute, originating in the Court of International Trade and affirmed by the Federal Circuit, is now before the Court in Trump v. V.O.S. Selections Inc., No. 25-250 (2025), and Learning Resources, Inc. v. Trump, No. 24-1287 (2025).
In speaking on a Los Angeles Federal Bar Association event on trade enforcement and compliance, Los Angeles Litigation partner and former federal prosecutor Ronald Cheng said trade enforcement matters can be “extremely vexing” for companies and individuals facing parallel criminal and civil exposure.
He added that the core issue in the Supreme Court cases is whether the IEEPA’s grant of authority to regulate trade also encompasses the power to impose duties.
Cheng also noted that even if the Supreme Court strikes down some or all of the tariffs, “it’s not that simple” that related prosecutions would automatically disappear. Outcomes could hinge on factors such as when the alleged conduct occurred and the defendant’s intent.
In addition, Cheng said he “gave up a long time ago” trying to predict Supreme Court rulings but noted that the case “will definitely be one of the cases in this term that will garner a significant amount of attention,” with a decision expected next year.