Supreme Court Rules IEEPA Cannot Be Used to Impose Tariffs
In a 6-3 decision, the Supreme Court held that IEEPA does not authorize the President to impose tariffs, striking down all IEEPA-based duties; CBP stopped collecting them effective February 24.
The Supreme Court held 6-3 that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. All IEEPA-based tariffs, including reciprocal, fentanyl, and universal baseline duties, were struck down. CBP stopped collecting IEEPA tariffs effective 12:00 a.m. ET on Feb 24.
Why it matters
This eliminated the primary tariff authority used throughout 2025 and early 2026. The effective tariff rate dropped from roughly 14.3% to 7.3% immediately after the ruling, before the Section 122 replacement was imposed. Tariffs under Section 232, Section 301, and AD/CVD orders remain unaffected.
Watchouts
Refund eligibility depends on entry liquidation timing. De minimis duty-free treatment remains suspended. Section 232, 301, and AD/CVD tariffs still in effect.