Supreme Court Strikes Down IEEPA Tariffs in Landmark 6-3 Decision
On February 20, 2026, the U.S. Supreme Court issued a landmark 6-3 decision in Learning Resources, Inc. v. Trump, ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs.
This decision effectively reversed all tariffs imposed under IEEPA during the Trump administration’s second term and set the stage for billions of dollars in refunds to U.S. importers.
Background: How We Got Here
In February 2025, President Trump issued executive orders imposing tariffs on imports from Canada (EO 14193), China (EO 14195), and Mexico (EO 14194), citing national emergencies related to drug trafficking and illegal immigration. In March 2025, additional tariffs were imposed on countries importing Venezuelan oil.
These tariffs ranged from 10% to 25% on various goods and were imposed using IEEPA — a law originally passed in 1977 to allow the president to regulate international commerce during declared national emergencies.
Court of International Trade Ruling
On May 28, 2025, the U.S. Court of International Trade ruled in Genova Pipe v. Lutnick and Noem that the IEEPA tariffs exceeded presidential authority. The case was appealed to the Supreme Court.
Supreme Court Decision
The Supreme Court affirmed the lower court’s ruling, holding that IEEPA’s grant of authority to “regulate” and “prohibit” transactions does not include the power to set tariffs on imported goods. The 6-3 majority found that tariffs are a form of taxation that requires Congressional authorization.
What Happened After the Ruling
- February 20, 2026: Executive Order issued ending all IEEPA tariff actions
- February 24, 2026: IEEPA tariffs officially stopped being collected (per CSMS #67834313)
- Court of International Trade: Directed CBP to refund all IEEPA duties to importers who paid them
- CBP CAPE System: Phase 1 launching April 20, 2026 for processing refund claims
Countries and Products Affected
All IEEPA tariffs are now terminated, including:
- Canada: 25% tariff on most goods, 10% on energy products
- China: 20% additional tariff (on top of existing Section 301 tariffs)
- Mexico: 25% tariff on most goods
- Venezuelan oil importers: 25% tariff on imports from countries that purchase Venezuelan oil
What Importers Should Do Now
- Prepare for CAPE: Gather your entry numbers with IEEPA Chapter 99 duties and prepare CSV files for declaration filing
- File timely protests: Protest any liquidations within 180 days — do not rely solely on CAPE
- Consider CIT lawsuits: For entries that have already finally liquidated, a lawsuit may be the only path to a refund
- Set up ACH refund account: Register a separate ACH account in ACE for receiving refunds
- Consult a trade attorney: The process has complexities that benefit from professional guidance
Key Dates
| Date | Event |
|---|---|
| Feb 2025 | IEEPA tariffs first imposed on Canada, China, Mexico |
| Mar 2025 | IEEPA tariffs on Venezuelan oil importers |
| May 28, 2025 | CIT rules tariffs unlawful |
| Feb 20, 2026 | Supreme Court affirms — IEEPA tariffs struck down |
| Feb 24, 2026 | IEEPA tariff collection officially stops |
| Apr 20, 2026 | CAPE Phase 1 launch for refund filings |
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