On February 20, 2026, the U.S. Supreme Court has held that the International Emergency Economic Powers Act (IEEPA) does not grant the President of the United States authority to impose tariffs on goods imported into the USA. The ruling came via a 6-3 majority ruling in which the justices stated IEEPA does not permit the executive branch to implement tariffs without Congressional approval.
What This Means Now
- IEEPA tariffs are rendered invalid
- IEEPA tariffs include Canada, Mexico and China Fentanyl tariffs, and all country specific Reciprocal tariffs
Note: Until US Customs and Border Protection (CBP) issue instructions on the removal of the IEEPA tariffs, the tariffs will still calculate, and are payable, on US import entries. This is an important first step in the process and lays the foundation for the tariffs to be removed and refunds (if applicable) issued.
What This Means Going Forward
- Tariffs imposed under other national security measures, such as 232 (Steel, Aluminum, Copper, Lumber, etc.) and 301 (China tariffs), remain in full effect and are not impacted by this ruling
- CBP will issue instructions on how refunds are to be processed and obtained by importers
- For the refund process, U.S. Congress previously discussed options for potential IEEPA refunds
- Voluntary Reliquidation
- CBP has the authority to reliquidate entries and issue refunds on subject import entries back to the implementation date of the IEEPA tariffs
- Court of International Trade (CIT)
- If a protest is denied, the CIT has exclusive jurisdiction over any importer that wishes to contest the denial
- CIT has held that it has the authority to cause the reliquidation of entries
- Protests
- Importers can file a protest for up to 180 days post-liquidation
- If CBP allows the protest and finds that any duties (IEEPA in this case) were assessed or collected in excess, they shall be remitted or refunded.
- Voluntary Reliquidation
- For the refund process, U.S. Congress previously discussed options for potential IEEPA refunds
Information pertaining to IEEPA tariff import entry calculation and potential refunds will be advised once it becomes available.
For more information, contact Matthew Williamson, Consultant – Trade Advisory.
