On February 20, 2026, the Supreme Court of the United States affirmed in a 6-3 decision that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision, authored by Chief Judge Roberts, defined the tariffs as a tax on U.S. importers and the Court emphasized that any delegation by Congress to the President of the power to impose tariffs must be explicit and that is not the case with the IEEPA statute. Because the Court’s decision covered IEEPA authority broadly, it is anticipated that all IEEPA tariffs imposed on imports will be deemed unlawful, including targeted tariffs on Brazil and India.
The decision did not address the issue of remedies. While it is unclear how quickly CBP will react to the decision, it is anticipated that CBP will be required to stop collecting the IEEPA tariffs. Regarding potential refunds of IEEPA tariffs that have been paid to date, it is likely that further proceedings in the Court of International Trade will be necessary. During a press conference today, the President did not commit to paying refunds and stated the refund issue will likely be litigated for years. Companies that have filed cases to contest the tariffs should be protected for eventual recovery of refunds, and we continue to recommend that companies file protective cases in court, particularly in light of the President’s comments today. It remains uncertain whether administrative protests filed with CBP will be an available procedure for refunds. Companies should consider filing protective administrative protests within 180 days of liquidation to preserve potential administrative refund rights until the question of remedy is resolved.
President Trump stated today that he intends to impose a global tariff of 10% ad valorem under other authorities in Section 122 of the Trade Act on 1974 effective next week.
GDLSK is involved in the numerous cases pending in the CIT and will continue to provide updates and guidance. Please contact any of our attorneys with any questions.
