U.S. Supreme Court Decision Strikes Down IEEPA Tariffs

On Friday, February 20, the United States Supreme Court issued a 6–3 decision holding that the Trump Administration lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs. As a result, the IEEPA-based tariffs have been struck down.

The decision does not address refunds or suspension of the collection of new tariffs.  We expect CBP to issue instructions regarding collection of new tariffs imminently, but refunds for liquidated and unliquidated entries remain uncertain.

This decision does not impact tariffs imposed under Section 301 (China) or Section 232 (Metals, Semiconductors, Auto, etc.) but does impact the those imports of articles subject to the Steel, Aluminum and Copper tariffs, where the now-unlawful IEEPA tariffs are imposed on the non-metal content.

What Happens Next

At this time, we are closely monitoring developments from U.S. Customs and Border Protection (CBP), the Administration and the courts. Key areas to watch include:

1. Official Removal of IEEPA Tariffs

• As the tariffs are unlawful, new IEEPA tariffs should not be collected/declared, but there may be a delay in systems updates.
• Pending CSMS Instructions and ACE System Updates

• CBP may take action on its own or may await instructions from the Court of International Trade
• Importers should protect rights to refunds.  

• The President announced today a 10% Global tariff will be imposed under the authority of Section 122 of the Trade Act of 1974 and will initiate new investigations under Sections 301 and 232 for additional tariffs.  

The CBP has issued the following notices:

CSMS # 67823350 - Supreme Court of the United States (SCOTUS) Judgment - International Emergency Economic Powers Act (IEEPA) Tariffs

CSMS # 67834313 - Ending Collection of International Emergency Economic Powers Act