Supreme Court Strikes Down IEEPA Tariffs

February 20, 2026 | VOS Selections and Learning Resources, Inc. v. Trump

In a landmark 6-3 ruling issued on February 20, 2026, the United States Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision in Learning Resources, Inc. v. Trump invalidates the sweeping "reciprocal" tariffs imposed on the vast majority of U.S. trading partners, as well as the tariffs imposed on China, Canada, and Mexico that were justified on the grounds of immigration and illicit opioid flows. Chief Justice John Roberts authored the majority opinion, joined in full by Justices Gorsuch and Barrett, and joined in part by Justices Sotomayor, Kagan, and Jackson. Justices Thomas, Alito, and Kavanaugh dissented. A central rationale of the majority opinion was the "major questions" doctrine — the principle that when Congress intends to delegate authority to make decisions of vast economic or political significance, it must do so with clear and unmistakable language. Chief Justice Roberts, joined by Justices Gorsuch and Barrett on this point, concluded that IEEPA's language authorizing the President to "regulate . . . importation" falls far short of the express statutory authorization required before a president can unilaterally impose unlimited tariffs of indefinite scope on all U.S. trading partners.

Refund Implications: Over $175 Billion at Stake

The decision has opened the door to significant refund claims. The Penn-Wharton Budget Model estimates that over $175 billion in tariff revenue is potentially subject to refund. Importers generally have 180 days after their entries are liquidated to file a protest with U.S. Customs and Border Protection (CBP) and request a refund of the IEEPA tariffs paid. This decision has immediate and significant practical consequences for importers who paid IEEPA tariffs. Key action items may include:

  • Organize and review entries. Identify all shipments on which IEEPA tariffs were collected and calculate potential refund exposure.

  • Ensure that the importing company has an active ACE account and is enrolled in that account to receive ACH refunds.

  • Prepare to filed timely administrative protests. Importers will have 180 days from liquidation of each entry to protest and claim a refund of IEEPA tariffs paid.

  • Importers with significant IEEPA exposure may benefit from filing concurrent litigation in the Court of International Trade.