Supreme Court Strikes Down IEEPA Tariffs
Written by Black Hot Fire Network Team on February 23, 2026
On February 20, 2026, the U.S. Supreme Court issued a 6–3 decision in Learning Resources v. Trump, holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The ruling affirmed the Federal Circuit’s judgment invalidating tariffs imposed under IEEPA and forecloses the President’s future use of IEEPA for this purpose.
The Supreme Court’s decision stems from challenges to tariffs imposed under IEEPA on imports from various countries, including reciprocal tariffs on most countries due to declared trade deficits, and tariffs on Chinese, Mexican, and Canadian goods related to fentanyl imports. The Court’s analysis was not limited to these specific tariff programs, establishing a categorical holding that IEEPA lacks the authority to permit presidential tariffs.
The Supreme Court’s Decision
The Supreme Court affirmed the Federal Circuit’s judgment, invalidating tariffs imposed under IEEPA. The Court concluded that Article I, Section 8 of the U.S. Constitution assigns tariff authority to Congress and that IEEPA’s authorization to “regulate … importation” does not clearly encompass the power to levy duties. The Court did not limit its ruling to prospective application and remained silent on remedies beyond affirming the invalidation of the tariffs.
A parallel case in the U.S. District Court for the District of Columbia was vacated and remanded with instructions to dismiss for lack of jurisdiction, recognizing the exclusive jurisdiction of the Court of International Trade (CIT) for such matters.
Justice Brett M. Kavanaugh, joined by Justices Clarence Thomas and Samuel A. Alito Jr., dissented in a 63-page opinion. The dissent argued that the President should be able to impose tariffs under his power to conduct foreign affairs and expressed concerns about the refund process and potential trade arrangement uncertainty.
Immediate Impact of the Ruling
Despite the Supreme Court’s ruling, U.S. Customs and Border Protection (CBP) systems will not immediately update. CBP is expected to issue guidance and update the Harmonized Tariff Schedule (HTS) to remove IEEPA-related provisions, though this may not occur immediately.
The timing and process for potential refunds remain uncertain, as the majority opinion did not address refund mechanics. President Trump indicated the government will not voluntarily issue refunds and that litigation may be required. Existing lawsuits related to the Supreme Court’s decision will need to be addressed, and the CIT may coordinate proceedings.
Likely Next Steps for Additional Duties
The Trump administration intends to quickly impose new or increased tariffs under alternative statutory authorities, such as Sections 232, 301, 201, 338, and/or 122. These authorities often require additional procedures or limit the scope of new tariffs.
The President announced an impending Executive Order imposing a 10 percent additional duty on imports from all countries under Section 122, with an anticipated effective date within three days. However, Section 122 limits tariffs to a duration of 150 days unless Congress approves an extension.
The administration also plans to initiate Section 301 and other investigations to impose additional duties to combat alleged unfair trade practices and may revise existing Section 232 measures. The impact of the ruling on existing trade agreements remains unclear, but abandonment of commitments by other countries is not currently expected.
