Supreme Court Voids IEEPA Tariffs; Section 122 Replacement Takes Effect

What the Court Ruled

On February 20, 2026, the U.S. Supreme Court issued a definitive ruling in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. In a 6-3 decision, Chief Justice Roberts wrote that IEEPA "contains no reference to tariffs or duties" and that the President cannot rely on two words separated by 16 others in the statute to justify a sweeping tariff regime. This ruling invalidates all tariffs previously imposed under IEEPA authority.

The Court's opinion was clear: "until now no President has read IEEPA to confer such power." The decision is final and does not permit further appeal.

If you imported goods into the United States between April 2025 and February 20, 2026, you likely paid tariffs under IEEPA authority. This ruling directly affects those entries.

IMPORTANT: The Supreme Court did not address whether importers will receive refunds of IEEPA tariffs already paid. This remains unresolved. Preserve all entry records. We will update you when CBP issues guidance.

The New Tariff Reality

The administration moved immediately. On February 24, 2026, just four days after the Supreme Court's ruling, a new 10% ad valorem tariff on most imports took effect under Section 122 of the Trade Act of 1974. This is a temporary tariff valid for 150 days, through July 24, 2026.

This means:

• IEEPA tariffs are legally void as of February 20, 2026

• A new 10% Section 122 tariff is now in effect as of February 24, 2026

• Most importers face new tariff exposure even as IEEPA exposure is eliminated

Why the Court Rejected IEEPA

The Supreme Court held that IEEPA does not grant tariff authority, even during a declared national emergency. Tariffs require explicit congressional authorization, and IEEPA's broad commerce provisions do not satisfy that requirement. Three Justices dissented (Alito, Thomas, and Kavanaugh), but the dissent does not affect the binding ruling.

IEEPA Tariffs Now Invalid, But Refunds Remain Unresolved

The Court explicitly declined to address the refund question, leaving it to the courts, CBP, or Congress to determine. Billions of dollars in IEEPA tariffs were collected over approximately one year. As of the date of this advisory, no official guidance has been issued by CBP on: