Supreme Court Strikes Down IEEPA-Based Tariffs

In a significant ruling, the Supreme Court of the United States held in a 6–3 decision that the president exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).

Chief Justice John Roberts, writing for the majority, stated that IEEPA does not authorize the president to impose tariffs, noting that Congress had not expressly granted such authority under the statute. The decision affirms that tariff-setting power constitutionally resides with Congress.

What the Ruling Affects

The ruling invalidates two categories of tariffs imposed under IEEPA:

• Country-specific “reciprocal” tariffs (ranging up to 34% on China and a 10% baseline on other countries)

• A 25% tariff on certain goods from Canada, China, and Mexico tied to fentanyl enforcement concerns

However, tariffs imposed under other trade statutes — including steel and aluminum tariffs — remain unaffected.

Potential Financial Impact

No formal guidance or process has been released at this time outlining the mechanism of how or when importers can request or receive duty refunds.  At this time, all IEEPA tariffs will be in place as status quo until CBP can give further instructions.     

According to data from U.S. Customs and Border Protection, approximately $130 billion had been collected under IEEPA tariffs as of mid-December.

The administration may also explore reimposing certain tariffs under alternative statutory authorities.

Important

This is a developing situation. As of now, there is no published implementation guidance, no refund procedures, and no announced administrative process related to the impacted tariffs.

We will continue monitoring for official agency direction and provide additional updates as more information becomes available.