A major shift in federal trade authority just occurred — and it may directly impact your bottom line.
The U.S. Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. As a result, the “reciprocal” or “trade deficit” tariffs imposed under IEEPA are unlawful.
For importers, manufacturers, distributors, construction companies, and retailers, this decision is financial — not theoretical.
What the Court Decided
In consolidated cases including V.O.S. Selections and Learning Resources, the Court:
- Held that IEEPA does not grant tariff authority.
- Affirmed judgment against the Government in the Court of International Trade path.
- Clarified that tariff disputes fall under the exclusive jurisdiction of the Court of International Trade (CIT) — not federal district courts.
The asserted legal authority for these tariffs has been rejected.
Do Tariffs Stop Now?
The opinion does not include a delayed effective date.
Absent a stay, Customs and Border Protection (CBP) would be expected to stop collecting IEEPA-based duties once the judgment becomes effective. Any pause or additional litigation would occur post-decision.
What About Money Already Collected?
The Court did not order automatic refunds.
However, refunds may be pursued through:
- Customs protest procedures
- Administrative refund claims
- Litigation in the Court of International Trade
The dissent noted the government could face billions in refunds, and disputes over eligibility, timing, and scope are likely.
How This Affects Business Owners
Cash Flow
Businesses that paid IEEPA-based tariffs may have refund opportunities — but recovery could take time and require formal action.
Contracts & Pricing
If costs were passed through to customers, refund recovery could raise contract interpretation issues, including rebate or pricing adjustment obligations.
Supply Chain Strategy
Lower import costs may shift pricing and sourcing decisions — but alternative tariff authority under other statutes (such as Section 232 or Section 301) remains possible.
What We Recommend
At Trembly Law, we encourage business owners to:
- Audit IEEPA-based tariff payments
- Review protest and liquidation status
- Preserve customs documentation
- Evaluate contract exposure
- Monitor potential alternative tariff actions
Trade uncertainty can quickly become legal exposure. Proactive planning matters.
If your business imports goods or adjusted pricing due to these tariffs, now is the time to assess your position.
Trembly Law — Protecting the Economy, One Business at a Time.