Supreme Court Strikes Down IEEPA Tariffs

Trade Update • February 20, 2026

Key Points

• The Supreme Court of the United States ruled that the President does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs.
• Reciprocal, fentanyl-related, and certain country-specific tariffs issued under IEEPA are invalidated, and continued collection is blocked.
• Tariffs imposed under other statutory authorities are not affected by this decision.
• Guidance on implementation timing, refund eligibility, and next steps for importers has not yet been released.

O​​​​​​​ n February 20, the Supreme Court of the United States (SCOTUS) issued a 6–3 decision holding that the President does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs.

Review the Court’s notice here: LEARNING RESOURCES, INC., ET AL. v. TRUMP, PRESIDENT OF THE UNITED STATES, ET AL.

Tariff Setting Authority

In its opinion, the Court determined that while IEEPA permits the President to “regulate … importation” in response to unusual or extraordinary threats, the statute does not confer tariff-setting authority. Writing for the majority, Chief Justice John Roberts stated that if Congress intended to grant such authority, it would have done so expressly, as it has in other tariff statutes.

The Court affirmed the decision of the United States Court of Appeals for the Federal Circuit and remanded the matter to the United States Court of International Trade to consider whether a nationwide injunction against IEEPA-based tariffs is appropriate.

Tariffs Impacted by the Decision

The ruling applies specifically to tariffs imposed under IEEPA authority, including:

• Reciprocal tariffs applied to multiple trading partners

• Fentanyl-related tariffs on Canada, China, and Mexico

• Country-specific tariffs, including measures applicable to Brazil

• Tariffs imposed under other statutory authorities are not affected by this decision.

As a result of the decision, continued collection of tariffs imposed under IEEPA is blocked.

What This Means for Importers

• IEEPA-based tariffs are invalidated under the Court’s ruling.

• Duties previously collected under IEEPA may be subject to refund; however, formal guidance on eligibility, timing, and procedure has not yet been released.

• Tariffs imposed under other statutory authorities (e.g., Section 232 or Section 301) are not affected by this decision.

• The Administration may seek to implement alternative tariff measures under different legislative authority.

While this decision has significant implications for importers, global supply chains, and duty exposure, operational guidance details remain outstanding. Clarification is still required regarding:

• The effective date for cessation of duty collection

• Treatment of goods currently in transit

• Refund and protest mechanisms

• Potential replacement measures

Our Commitment

GHY is actively monitoring developments, including agency guidance and any procedural direction from U.S. Customs and Border Protection. We are assessing the potential impact on entries, duty payments, refund eligibility, and compliance strategy. Our team will continue to provide updates as additional information becomes available.

If you have questions regarding specific shipments or potential duty exposure, please contact your GHY Client Care Manager directly.

We will keep you informed as this situation evolves.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.