Alerts2.20.26
Supreme Court Strikes Down IEEPA Tariffs: Key Takeaways for Importers and What Comes Next
Highlights
- Today, the U.S. Supreme Court issued its decision on tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
- By a 6-3 vote, the Supreme Court determined that IEEPA tariffs are unlawful and unconstitutional.
- The majority opinion, however, did not discuss whether or how refunds will be issued nor the impact on the framework of U.S. trade deals negotiated with certain foreign countries within the past year (e.g., the European Union and Japan).
- This decision does not affect the legality of the tariffs imposed under Section 232 (e.g., steel and aluminum and autos) and Section 301 (e.g., China).
Because the Supreme Court was silent on this issue, the road to refunds on past entries remains unclear. In a press conference today, President Donald Trump indicated that the federal government will litigate the IEEPA tariff refund issue. In prior filings with the courts, however, the government took the position that it will issue refunds if the Supreme Court finds the IEEPA tariffs unlawful.
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