SCOTUS limits IEEPA tariffs

The Supreme Court said on February 20 that the International Emergency Economic Powers Act does not let a president impose tariffs, wiping out the legal basis for Trump’s 2025 emergency-duty orders. (supremecourt.gov) Chief Justice John Roberts wrote the 6-3 opinion in *Learning Resources, Inc. v. Trump* and the companion *Trump v. V.O.S. Selections, Inc.* case. The Court said the law covers broad economic controls in emergencies, but not tariffs, which Article I gives Congress power to authorize. (supremecourt.gov) The tariffs at issue were large and recent: 25% on most imports from Canada and Mexico, 10% on most Chinese imports tied to drug-trafficking declarations, and a separate minimum 10% “reciprocal” tariff on imports from nearly all trading partners. Trump imposed them in 2025 after declaring national emergencies over fentanyl and trade deficits. (supremecourt.gov; congress.gov) The legal fight turned on a basic separation-of-powers question: whether a 1977 emergency statute can be read to include a tax on imports when the word “tariff” never appears in it. A Congressional Research Service analysis said no president had used the International Emergency Economic Powers Act, or IEEPA, to impose tariffs before 2025. (congress.gov) That ruling did not just stop future collections. On March 4, the U.S. Court of International Trade said “all importers of record” that paid IEEPA duties are entitled to the benefit of the Supreme Court’s decision and ordered Customs to assess many entries without those duties. (sullcrom.com) The court’s refund order reaches beyond the companies that sued. Judge Richard Eaton said the trade court has nationwide authority over tariff disputes and directed U.S. Customs and Border Protection to liquidate unliquidated entries without the IEEPA charges. (sullcrom.com) Customs moved from court orders to claims processing on April 20. The agency launched the first phase of a new CAPE tool inside the Automated Commercial Environment portal to let importers submit IEEPA duty refund requests electronically. (cbp.gov; cbp.gov) Customs said approved refunds will be issued for valid claims made under court order and applicable law, and its April 10 fact sheet told importers to use CAPE for batch submissions. The agency also said refunds are issued electronically through Automated Clearing House, with limited exceptions. (cbp.gov; cbp.gov) Congress still has other tariff statutes on the books. The Congressional Research Service pointed to Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 as examples of laws that explicitly let the executive branch impose tariffs in defined circumstances. (congress.gov) For importers, the case is now less about whether the IEEPA tariffs survive and more about which entries qualify, when liquidation became final, and how quickly Customs can process claims. The opening of the refund portal on Monday turned a constitutional ruling into a cash-flow question for companies that paid those duties in 2025 and early 2026. (cbp.gov; cbp.gov)