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 launched 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

Ready to file? Read our Step-by-Step Guide or check your eligibility. Need help? Get a free assessment from our vetted trade law partners.

Update — June 8, 2026: Four Months After the Ruling

The Supreme Court decision set everything in motion, but the refund process has evolved significantly since February 20. Here are the key developments every importer should know:

CAPE Phase 1 Is Live and Processing Refunds

CBP launched the CAPE (Consolidated Administration and Processing of Entries) system on April 20, 2026. As of the May 26 progress report:

15.8 million entries accepted through CAPE
8.3 million+ entries liquidated IEEPA-free
$20.6 billion certified to Treasury for disbursement
~$85 billion in the total refund pipeline
Average 18-day turnaround for clean entries (~14 days for electronics/consumer goods) — significantly faster than CBP’s published 60–90 day estimate
~33% of declarations fail file validation — pre-filing data cleanup is critical

Source: CBP Lord Declaration filed with the Court of International Trade on May 26, 2026.

First Refunds Issued May 11

The first wave of IEEPA refund ACH processing began on May 11, 2026, with approximately $35.46 billion initially anticipated on 8.3 million liquidated entries. By the May 26 progress report, CBP had certified $20.6 billion to Treasury for disbursement. However, thousands of refunds remain stuck because importers have not provided valid ACH banking information.

Source: CBP May 12 and May 26, 2026 Court of International Trade progress filings, summarized in our May 11 refund disbursement update and CIT show cause order analysis.

CIT Court Escalates Pressure on CBP

On May 27, 2026, CIT Judge Eaton issued a show-cause order directing CBP to explain why it should not immediately refund ALL IEEPA tariffs — including finally liquidated entries currently excluded from CAPE Phase 1. Key dates:

Date	Event
June 4, 2026	CBP’s show-cause response due
June 6, 2026	DOJ appeal deadline — administration appealed the CIT refund order
June 9, 2026	CIT hearing — CBP Commissioner Rodney Scott ordered to appear in person

Source: CIT Judge Eaton’s May 27, 2026 orders and June 2026 trade-law summaries from Davis Wright Tremaine and Thompson Hine.

What Importers Should Do Now

File CAPE declarations for Phase 1-eligible entries — do not wait for litigation to resolve
File protective protests within 180 days of liquidation for all liquidated entries
Consider CIT lawsuits for finally liquidated entries — this may still be the only path until the court rules
Verify ACH banking in ACE before filing — thousands of refunds are stuck on missing ACH info
Consult a trade attorney for entries outside Phase 1 scope

Read our complete timeline for every key date and deadline.