U.S. Supreme Court Rules Against IEEPA Tariffs

The Supreme Court ruled that IEEPA is not a valid legal basis for tariffs. Some tariffs may remain in effect under other statutes, and refunds are still uncertain.

The U.S. Supreme Court on Friday ruled that the International Emergency Economic Powers Act (IEEPA) does not give the President the power to impose tariffs.

The Court rejected the government’s argument that IEEPA’s authority to “regulate … importation” includes the power to levy customs duties.

The Court said the challenged tariffs were imposed after the President declared national emergencies related to drug trafficking and trade deficits.

In its decision, the Court explained that IEEPA lists many economic tools but does not refer to “tariffs” or “duties.” It also said that the word “regulate” is not usually understood to mean taxing.

The ruling limits how IEEPA can be used as a legal basis for tariffs. It also reinforces that setting tariffs is primarily Congress’s responsibility, and that any shift of that authority to the President would require clear congressional authorization.

The ruling strikes down tariffs that relied on IEEPA, but it does not automatically affect tariffs issued under other trade laws. Whether importers will receive refunds also remains unclear.

The case now returns to the Court of International Trade for the next steps on how the decision will be applied.

U.S. Customs and Border Protection (CBP) is expected to provide guidance on implementation, including whether any refund process will apply.

According to U.S. government data, more than US$133 billion has been collected under IEEPA since its implementation. IEEPA tariffs on Canadian goods alone amounted to US$2.42 billion.

This is breaking news. We will continue to update this story as it unfolds.