What did the Supreme Court decide regarding IEEPA tariffs?

The Supreme Court ruled in a 6–3 decision that President Trump did not have authority under the International Emergency Economic Powers Act to impose country-specific tariffs. The Court emphasized that the Constitution grants Congress, not the President, the power to levy tariffs.

Which courts had previously ruled against the IEEPA-based tariffs?

Before the Supreme Court’s decision, both the Court of International Trade and the Court of Appeals for the Federal Circuit had concluded that the President exceeded his statutory authority by using IEEPA to justify tariffs on imports from Canada, Mexico, China, and the so-called reciprocal tariffs.

Will importers receive refunds for tariffs collected under IEEPA?

The issue of refunds remains unresolved. Whether importers will receive refunds, and how and when those refunds might be processed, depends on further action by the Court of International Trade and the Trump administration.

What immediate actions did the White House take after the ruling?

Shortly after the ruling, the White House issued an Executive Order titled “Ending Certain Tariff Actions,” which terminated all tariffs imposed under IEEPA and directed that their collection cease as soon as practicable.

What is the new 10% import surcharge?

The Presidential Proclamation titled “Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems” introduced a new temporary 10% tariff on imports from all countries, effective February 24, 2026, under a different statutory authority.

How does the new Executive Order affect de minimis shipments?

The Executive Order titled “Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries” modifies the tariff treatment of low-value shipments. It aligns their treatment with the newly announced 10% surcharge, following earlier changes that had already removed their duty-free status.

US Trade Shift: IEEPA Tariffs End, 10% Tariffs Start

On February 20, two major events occurred: the Supreme Court ruled on President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, and the White House released an Executive Order and a Presidential Proclamation in response to the decision.

Supreme Court Ruling and New Tariffs

In a 6-3 decision, the US Supreme Court ruled that President Trump lacked authority under the IEEPA to impose the country-specific tariffs introduced the previous year. Moreover, the Supreme Court held that the IEEPA does not authorize the President to impose tariffs, emphasizing that the Constitution assigns the power to levy tariffs to Congress alone.

Consequently, the ruling effectively affirmed earlier lower-court decisions. More specifically, both the Court of International Trade (CIT) and the Court of Appeals for the Federal Circuit (CAFC) previously concluded that the President exceeded his statutory authority by relying on IEEPA to justify tariffs on imports from Canada, Mexico, and China, as well as the so-called reciprocal tariffs.

Whether importers will receive refunds on tariffs previously collected under the IEEPA, and how and when any such refunds might be processed, now depends on further action by the CIT and the Trump administration. However, shortly after the Supreme Court's ruling was published, the White House announced a series of executive actions that both terminated the old tariff regime and introduced new trade measures under different statutory authority.

Firstly, an Executive Order titled “Ending Certain Tariff Actions” immediately terminated all tariffs imposed under IEEPA and directed that their collection cease as soon as practicable. Simultaneously, a Presidential Proclamation titled “Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems, was published.” The Proclamation establishes a new, temporary 10% tariff on imports from all countries, effective February 24, 2026.

Additionally, an Executive Order titled “Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries,” was published, modifying the tariff treatment of low-value shipments that had previously lost duty-free status under an earlier executive order, to align with the newly announced 10% surcharge.

Conclusion

While the Supreme Court’s ruling ended the IEEPA-based tariffs, it left unresolved the practical issue of refunding the duties already collected. At the same time, the Trump administration acted swiftly to replace the invalidated measures with a new temporary tariff regime grounded in a different statutory framework. Overall, these two related events signal that trade restrictions will continue under alternative legal grounds.

Source: Supreme Court Ruling - Learning Sources Inc. v. Trump No. 24–1287, The White House, VATabout