Supreme Court IEEPA Tariff Ruling: What Every Importer Needs to Know

The Ruling in Plain English

In Learning Resources Inc. v. Trump, the Supreme Court was asked a simple question: Can the President use the International Emergency Economic Powers Act (IEEPA) to impose tariffs?

The answer, by a 6-3 majority: No.

Chief Justice Roberts, joined by Justices Barrett and Gorsuch — notably breaking from their typical alignment — held that IEEPA's grant of authority over "economic transactions" does not extend to customs duties. Tariffs are a tax, and taxes are exclusively Congress's power under Article I of the Constitution.

The three dissenters (Thomas, Alito, Kavanaugh) argued for a broader reading of presidential emergency powers, but the majority was clear: IEEPA is not a tariff statute.

What Tariffs Are Affected

What the Court Did NOT Do

This is critical: the Court did not order refunds. It remanded the case to the Court of International Trade (CIT) to determine the remedy. This means:

• • The CIT must decide how refunds are processed
• • The CIT must decide the scope (which entries, which importers)
• • The CIT can order timelines and enforce compliance
• • The administration can (and will) argue about logistics and timing

Justice Kavanaugh warned in his dissent that this would create a "mess." He appears to be right.

The Administration's Response

Within hours of the ruling, President Trump held a combative press conference:

• • Stated intent to delay refunds for "2 to 5 years" through litigation
• • Personally attacked Justices Barrett and Gorsuch
• • Signed Section 122 executive order imposing a 10% global tariff (150-day maximum)
• • Initiated Section 301 investigations for country-specific replacement tariffs
• • Showed zero willingness to negotiate a settlement

The message was clear: the administration will not cooperate voluntarily on refunds.

What This Means for Your Business

Short-Term (Next 90 Days)

The CIT remand proceedings will set the tone. Watch for:

• • CIT orders defining the scope and process for refunds
• • CBP guidance (if any) on how it will handle corrections
• • Congressional activity — any bills to authorize, block, or structure refunds

Medium-Term (2026-2027)

Expect a multi-track process:

• • Unliquidated entries processed first (fastest path)
• • Protested entries through administrative channels
• • 1581(i) actions through CIT litigation
• • Possible political negotiation for a global settlement

The Replacement Tariffs

Section 122 and Section 301 tariffs are prospective only. They apply to future imports, not past ones. Your right to a refund of past IEEPA duties is completely unaffected by whatever new tariff regime is established.

However, the new tariffs do affect your ongoing import costs. Plan accordingly.

The $175 Billion Question

The aggregate potential refund liability is staggering. Penn Wharton estimates $175 billion in IEEPA duties were collected through early 2026, with collections running at approximately $500 million per day before the ruling.

This scale is unprecedented. The government has never faced a refund obligation this large from a single court ruling. How it manages this — through orderly processing, political negotiation, or protracted delay — will define the timeline and recovery rate for every importer with a claim.

What You Should Do Today

1. 1. Confirm your filing status. Do you have active protests or 1581(i) actions covering your IEEPA entries? If not, time is critical.
2. 2. Categorize your entries. Which are unliquidated vs. liquidated? This affects your recovery path and timeline.
3. 3. Quantify your exposure. Add up every dollar of IEEPA duties you paid. This is your claim face value.
4. 4. Understand your claim's value. The face value is not the expected value. Timing, probability, and your cost of capital all affect what the claim is actually worth today.
5. 5. Decide: hold or sell. Litigation finance buyers are already in the market. Before you take any meeting, know your number.

This article is for informational purposes only and does not constitute legal, financial, or tax advice. Consult qualified counsel before making decisions about your tariff refund claims.