Supreme Court Strikes Down IEEPA Tariffs (Updated)

Published Feb. 20, 2026 | Updated Feb. 25, 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.

• IEEPA tariffs ended at 11:59 p.m. on February 23, 2026.

• 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.
• CBP released a guidance terminating the collection of IEEPA duties.
• No automatic refund mechanism currently exists for previously paid IEEPA duties.
  

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.

The IEEPA reciprocal tariffs, fentanyl tariffs, and Brazilian IEEPA tariffs ended at 11:59 p.m. on February 23, 2026.

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

Latest Update: On February 22, 2026, CBP issued guidance confirming that the agency will stop collecting IEEPA-based duties. Additionally, it will deactivate the related HTSUS numbers in ACE for entries made on or after 12:00 a.m. ET on February 24, 2026, without affecting other trade remedies such as Sections 232 and 301.

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.

IEEPA Refund Considerations

The Supreme Court decision and related executive action do not establish an automatic refund mechanism for IEEPA duties already paid.

Jurisdiction over recovery of IEEPA duties returns to the U.S. Court of International Trade (CIT). Any refunds, if granted, will likely proceed through litigation or formal administrative processes. Additional guidance from CBP or the courts remains pending.

Recordkeeping Recommendations

Importers should:

• Preserve documentation of duties paid under IEEPA tariffs.
• Review whether Section 232 tariffs superseded IEEPA tariffs on specific entries.
• Evaluate potential refund amounts against administrative and legal costs.

Procedural Considerations

Filing a pre-liquidation refund claim may trigger entry liquidation, which begins the 180-day protest period.

Importers may request an extension of liquidation before the statutory deadline under 19 CFR § 159.12.

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.