The Supreme Court IEEPA Ruling Explained: What Importers Need to Know

On February 20, 2026, the United States Supreme Court issued one of the most consequential trade decisions in modern history. In a 6-3 ruling, the Court held that President Trump’s tariffs imposed under the International Emergency Economic Powers Act were unconstitutional.

What the Court Said

Chief Justice Roberts, writing for the majority, was direct: the President does not have the authority to impose tariffs under IEEPA. The two words in the statute that the administration relied on — ‘regulate’ and ‘importation’ — cannot be stretched to authorize what is essentially a tax on imports. Congress holds the exclusive power to impose tariffs, and when Congress has delegated tariff authority in the past, it has done so explicitly and with strict limits. IEEPA contains neither.

Three justices — Gorsuch, Barrett, and Roberts — also applied the ‘major questions doctrine,’ which requires clear Congressional authorization before the executive branch can make decisions of vast economic significance. Tariffs affecting trillions of dollars in trade clearly qualify.

What This Means for Importers

Every IEEPA tariff collected from importers between February 2025 and February 2026 is now owed back to the importers who paid them. The total is approximately $166 billion. The Court of International Trade has ordered CBP to process refunds, and the CAPE portal launched on April 20, 2026 to handle claims.

Refunds include interest at the statutory rate, compounded daily from the date the duties were deposited. For importers who paid tariffs early in the period, the interest component alone could be significant.

What Comes Next

The IEEPA tariffs are gone, but tariffs are not. President Trump has already imposed a replacement 10% tariff under Section 122 of the Trade Act of 1974, which allows tariffs of up to 15% for 150 days without Congressional approval. That tariff expires in July 2026 and is already facing legal challenges from 24 state attorneys general.

The administration has also signaled potential use of Section 301 tariffs targeting specific trade practices, which would face their own legal and procedural requirements. The tariff landscape remains uncertain, but one thing is clear: the money you paid under IEEPA is yours and the government is legally required to return it.

Don’t leave money on the table. Contact Tariff Recovery Services today for a free evaluation of your refund eligibility. Call (508) 365-9992 or visit TariffRecoveryAttorneys.com.

We work on a contingency basis — you pay nothing unless we recover money for you.