The Supreme Court Strikes Down IEEPA Tariffs: What Does it Mean for Businesses?
The U.S. Supreme Court has issued a landmark decision, striking down a significant portion of President Trump’s tariff agenda, stating that only Congress can levy duties. New tariffs under Section 122 have sparked further legal questions, and the path forward for trade policy and refunds remains unclear.
- What we know now: In a 6-3 ruling, the Court determined that the law behind these import duties “does not authorize the President to impose tariffs,” marking a major shift in U.S. trade policy.
- What remains unclear: The ruling is silent on the refund process for duties paid under the higher IEEPA rates. The lack of guidance on the refund process leaves importers seeking reimbursement in limbo.
- What’s next: Importers should monitor official communications from the U.S. Customs and Border Protection (CBP) on filing protocols and timelines. However, based on general administrative practice and historical precedent, it is very likely that the standard refund mechanisms—Post Summary Corrections (PSCs) and Protests—will be utilized to claim any eligible refunds.
