On February 20, 2026, the US Supreme Court ruled 6–3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorise the president to impose tariffs. The decision invalidated many of the tariffs imposed under that law during Trump’s second term.
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The court held that IEEPA, an economic sanctions law, does not give the president power to set tariffs unilaterally. Tariffs of that kind must come from Congress or from statutes that clearly delegate the power. The case began with challenges in the lower courts, including the US Court of International Trade and the Federal Circuit, which had ruled against the tariffs in 2025.
Refunds
The Supreme Court did not set out how refunds should work. Refund procedures have since been handled through the Court of International Trade and US Customs and Border Protection. Law firms advising importers have reported that more than $160 billion in IEEPA duties had been collected. Refund timelines and eligibility have been changing, so importers should check current customs guidance.
What the ruling does not cover
The ruling does not affect duties imposed under other legal authorities, such as Section 232 and Section 301 tariffs. Other tariffs introduced after the ruling are being challenged separately.
Editor’s note: an earlier version of this article, written in August 2025 before the Supreme Court ruling, described an earlier court decision. It also included economic growth figures that could not be checked against a source. Those figures have been removed, and the article now reports the Supreme Court ruling and its aftermath.
Sources
- Wikipedia, Learning Resources, Inc. v. Trump (decided 20 February 2026): https://en.wikipedia.org/wiki/Learning_Resources,_Inc._v._Trump
- Skadden, Tariff refund mechanism takes shape after Supreme Court IEEPA ruling (March 2026): https://www.skadden.com/insights/publications/2026/03/tariff-refund-mechanism-takes-shape
- Hogan Lovells, Supreme Court Strikes Down IEEPA Tariffs: What Importers Need to Know Now (February 2026): https://www.hklaw.com/en/insights/publications/2026/02/supreme-court-strikes-down-ieepa-tariffs
- BDO, United States: Supreme Court reins in IEEPA tariff authority: what happens now: https://www.bdo.global/en-gb/insights/tax/indirect-tax/united-states-supreme-court-reins-in-ieepa-tariff-authority-what-happens-now
- Flexport, The Supreme Court’s IEEPA tariff ruling: next steps, potential refunds, and guidance for businesses: https://www.flexport.com/blog/the-supreme-courts-ieepa-tariff-ruling-next-steps-potential-refunds-and/