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RECENT SUPREME COURT DECISION INVALIDATING IEEPA-BASED U.S. TARIFFS

The U.S. Supreme Court, by a six-justice majority consisting of three Democratic-appointed and three Republican-appointed justices, has held that the government’s prior practice of imposing broad-based tariffs under the International Emergency Economic Powers Act (IEEPA) exceeded the authority granted by the statute. It remains to be seen how the government will address potential refunds of tariffs now deemed to have been unlawfully collected, amounting to approximately USD 170 billion. It also cannot be ruled out that the Trump Administration may seek to introduce new, potentially differently structured tariffs based on alternative statutory authorities. Whether such measures could be applied retroactively appears legally doubtful. We will keep you informed as the practical implementation of the Court’s reasoning and the administrative handling of potential tariff refund claims become clearer.

Also important in this context: If refund claims are pursued, situations may become sensitive where IEEPA-related tariff costs were previously passed on to customers explicitly. An early review of the relevant contractual framework and customer communications is advisable in order to mitigate potential follow-up issues or disputes.

WHAT EVERY CONTRACTOR SHOULD KNOW ABOUT ICE RAIDS AND JOBSITE DELAYS

For contractors already dealing with tight schedules and slim margins, an ICE enforcement action is not just a legal matter, it can throw an entire project off track. Construction remains a top target for ICE. While the laws themselves have not changed, enforcement priorities have. Even if your company is not directly targeted, a raid aimed at undocumented workers on a shared jobsite can still affect your workforce and your timeline.

Georgia’s E-Verify and I-9 Requirements
Georgia contractors have additional compliance responsibilities that cannot be ignored:

• E-Verify is required for Georgia employers with more than 10 full-time employees, including contractors and subcontractors on both public and private projects.
• Contractors on public works projects must submit E-Verify affidavits and include compliance language in their contracts.
• Every employee must have a properly completed and stored Form I-9, regardless of citizenship.
• General contractors may face exposure if subcontractors fail to meet Georgia’s E-Verify obligations.

During a worksite inspection, ICE frequently checks I-9 records and E-Verify participation, so keeping accurate, up-to-date documentation is critical.

What has Changed?
A January 20, 2025 executive order titled “Protecting the American People Against Invasion” has led to increased immigration enforcement. The Department of Justice now actively investigates employers who knowingly hire undocumented workers, especially if employees have criminal backgrounds, gang ties, or drug involvement. Contractors need to be aware: ICE is not just looking at individuals – it is looking at employers, too.

Different Types of Warrants

• Judicial Search Warrants: Allow entry into private property and seizure of listed items. Compliance is mandatory.
• Judicial Arrest Warrants: Allow ICE to arrest specific individuals. Employers must comply.
• Administrative Warrants: Allow searches in public areas only; private areas require consent.

Best Practices During a Raid

• Stay calm and follow instructions.
• Verify and copy the warrant.
• Contact legal counsel immediately.
• Avoid interfering with agents.
• Document all actions and items seized.
• Remind employees of their rights.
• Resume work only after ICE leaves and the site is confirmed safe.

Preventive Steps to Reduce Risk

• Conduct regular I-9 audits and train HR on employment verification.
• Have a clear ICE response plan and ensure key staff know their roles.
• Work with legal counsel to review compliance and stay current on regulations.

Bottom Line
ICE raids are happening often, and construction contractors are in the spotlight. Preparation matters.Staying compliant, training your team, and knowing how to respond if ICE shows up can help protect your crew, keep projects moving, and reduce costly disruptions.

Ms. Sharifi and Mr. Bever advise and represent business clients on I-9 compliance, government I-9 audits, and strategic responses to ICE raids and enforcement actions.

Source: What Every Contractor Should Know About ICE Raids and Jobsite Delays

DECISION REGARDING IEEPA TARIFFS: SUPREME COURT ADJOURNMENT

As regards the decision in the widely anticipated Learning Resources v. Trump case, the Supreme Court adjourned again last Wednesday, after the first adjournment from January 9 to January 14, and now for an indefinite period. In addition to the formal legal validity of the tariffs under IEEPA (which includes the 15% tariffs on most EU products), the key issue is whether and to what extent tariffs already levied would have to be reversed in the event of a rejection. Regardless of this, the customs agreement with the EU is also hanging in the balance in view of the latest US customs threats. The vote scheduled for this week in the EU Parliament is also expected to be postponed. At the same time, without a further extension, the EU retaliatory tariffs decided by the EU Commission in August and suspended for six months would take effect again on February 1, coinciding with the additional 10% threatened by Trump in relation to the demanded transfer of Greenland.

CUSTOMS OPTIMIZATION IN PRACTICE: DEDUCTION OF NON-DUTIABLE EXPENSES AS AN UNUSED TOOL

An important tool for customs optimization that is often not fully exploited in practice is the deduction of so-called non-dutiable expenses. These include in particular:

• Transport costs (foreign freight, international freight)
• Transport insurance
• Security fees (port security charge, supply chain security fee)
• Documentation fees (carrier booking fee, bill of lading, AMS filing, ISF “10+2”)
• Logistics fees (container handling, terminal handling, wharfage, container seal, yard monitoring, LCL handling, customs clearance)
• Storage costs with independent third parties
• Inspection and testing costs by independent third parties (after production, not for the purpose of production)
• Depreciation for goods already defective upon import
• Packaging as “instruments of international traffic” (e.g., pallets, cartons, hangers, not “normal packaging”)
• Post-importation price adjustments (via CBP reconciliation)
• Refunded foreign sales taxes (VAT/GST) – should already be omitted here
• Separately reported anti-dumping and countervailing duties (ADD/CVD)

Overpaid duties can be corrected retrospectively via the CBP Post-Summary Correction (PSC) Program until the Entry Summary is liquidated or within 300 days of importation, whichever occurs first.

$100,000 CAP FOR H1B VISAS: NEGOTIATIONS EXPECTED IN FEBRUARY

It remains unclear whether the administration will stick to its plan to introduce an additional H-1B visa fee of USD 100,000. One of the issues in the ongoing Chamber of Commerce et al. v. DHS case is the legal basis for this measure. Here too, the final word has not yet been spoken; further steps are expected in February.

VISA UPDATE: IMPORTANT CHANGES TO THE H-1B PROCESS

With immediate effect, the Trump administration imposed an administrative fee of US$100,000 at the end of last week for applying for and continuing to reside in the US on an H-1B work visa. H-1B visas are typically applied for by highly educated individuals who, for example, design software at Apple or teach at a university.

Therefore, the new regulation is likely to be of little concern to subsidiaries in the US, as employees sent from Germany usually apply for E or L category visas (these are work permits based on international treaties, investments, or trade). This applies in particular to US companies that have been acquired by German companies as part of an M&A transaction.

REVIEW OF TRUMP REGULATIONS BY THE JUSTICE DEPARTMENT

A large number of Trump administration regulations have since been reviewed by the US judiciary and either partially upheld or partially overturned as unlawful. Now that the majority of the import tariffs imposed by Trump have also been declared inadmissible on appeal due to a lack of legal basis (albeit currently still with suspensive effect), the question now is how the US Supreme Court will rule. It remains exciting.

TARIFFS AND TAX PLANS UNDER FIRE – US CASE LAW PUTS THE BRAKES ON TRUMP

The customs duties mandated by presidential decrees are now more frequently encountering resistance from the courts. Tariff decrees (as well as fiscal and social policy decrees) are being declared unconstitutional. Some prominent Republican politicians publicly oppose the administration’s plans to further increase the national debt. There is therefore a question mark over the adoption of the tax laws introduced by Trump (“One big beautiful bill”). Will it come to a constitutional showdown?

TRUMP VS JUSTICE – ESCALATION IN THE SEPARATION OF POWERS

The Trump government’s skirmishes with the American judiciary are becoming more frequent. Temporary injunctions are being ignored, Musk’s DOGE squad is undermining court orders, Trump is threatening to dismiss disagreeable judges, the chairman of the US Supreme Court is reprimanding the White House in no uncertain terms – a constitutional clash is brewing between the executive and judicial branches. What happens next…?

TARIFFS UNDER PRESSURE – US JUDICIARY EXAMINES LAWSUITS AND EXEMPTIONS

What role will the US judiciary play in lawsuits against the tariffs? Will individual industries be exempted from the sanctions? US government circles report that there are 3 motives for tariffs, (i) to offset “unfair” trade policies, (ii) to achieve political goals and (iii) to replenish the treasury – take a deep breath
and wait.