Supreme Court Invalidates IEEPA Tariffs

JD Supra Trade Law

Filed February 27th, 2026

Detected March 1st, 2026

Summary

The Supreme Court has ruled that the President lacks the constitutional authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs. The decision, in cases involving Learning Resources, Inc. and V.O.S. Selections, Inc., invalidates previously levied tariffs. Businesses that paid these duties are advised to consult legal counsel regarding potential refund options.

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What changed

The Supreme Court, in Learning Resources, Inc. v. Trump and V.O.S. Selections, Inc. v. Trump, has invalidated tariffs imposed by the President under the International Emergency Economic Powers Act (IEEPA). The Court determined that the power to impose tariffs is a congressional taxing power, not one that can be unilaterally exercised by the President under IEEPA. This ruling effectively renders the previously collected tariffs unlawful.

Businesses that paid import duties under these tariffs should consult with legal counsel to explore options for seeking refunds. While the Supreme Court did not outline a specific refund process, importers generally have 180 days after liquidation to file a protest with Customs and Border Protection. However, certain circumstances, such as ministerial actions by Customs, may complicate refund claims, and failure to protest liquidation could result in a waiver of refund rights. The ruling has significant implications for companies that paid these duties and may require proactive steps to recover funds.

What to do next

Consult legal counsel to evaluate potential refund options for paid import duties under IEEPA tariffs.
Review past import transactions subject to IEEPA tariffs to identify potential grounds for refund claims.
Understand the 180-day protest window for liquidated customs entries and assess if applicable to prior IEEPA tariff payments.

Source document (simplified)

February 27, 2026

Supreme Court Decision Invalidates Tariffs Imposed Under IEEPA

LinkedIn Facebook X Send Embed Last week, the Supreme Court struck down the Government’s tariffs levied under the International Emergency Economic Powers Act (IEEPA). Importantly, the Court did not address how businesses that paid import duties can obtain a refund now that IEEPA tariffs have been held unlawful.

In Learning Resources, Inc. v. Trump (consolidated with V.O.S. Selections, Inc. v. Trump, the subject of our January 15, 2026, legal alert), the Supreme Court held that the text of IEEPA does not grant the President the power to impose tariffs. The Court explained that the power to impose tariffs is “very clearly” a branch of the taxing power. The Constitution gives Congress alone access to this taxing power, so the President’s unilateral imposition of tariffs under IEEPA was unlawful.

The Supreme Court majority opinion did not address how businesses should obtain refunds. However, there is an existing statutory process to challenge tariffs paid to Customs and Border Protection. After tariffs are liquidated (i.e., finalized by Customs and Border Protection), an importer has 180 days to file a protest with Customs and Border Protection and seek a refund.

Pending lawsuits in the Court of International Trade address the risk that there are some instances when a business cannot protest an entry’s liquidation, such as when Customs and Border Protection acts in a ministerial capacity (i.e., without discretion). While this is an open question, a business that does not protest liquidation may waive its right to obtain a refund.

Businesses that have paid import duties under the IEEPA tariffs should consult legal counsel to evaluate potential refund options.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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