On February 20, in a 6–3 decision, the Supreme Court of the United States held that the Trump administration may not use the International Emergency Economic Powers Act (IEEPA) as authority to impose tariffs.
The Court determined that while IEEPA permits the president to “regulate … importation,” the statute does not explicitly authorize the setting or imposition of tariffs. In its opinion, Chief Justice John Roberts noted that if Congress intended to delegate tariff authority under IEEPA, it “would have done so expressly, as it consistently has in other tariff statutes.”
Importantly, the Court did not address how the government should handle refunds of tariffs previously collected under IEEPA-based actions. That issue remains unresolved and may be addressed in subsequent proceedings or through administrative guidance. The Court affirmed the decision of the US Court of Appeals for the Federal Circuit and remanded the case to the Court of International Trade. The lower court will now consider whether it may issue a nationwide injunction covering tariffs imposed under IEEPA.
President Trump told a press conference at the White House this afternoon that he will implement a 10% global tariff under Section 122 in response to the US Supreme Court’s decision this morning which struck down the Trump administration’s use of IEEPA tariffs.