U.S. Supreme Court Strikes Down IEEPA Tariffs

In a long-anticipated decision, by a 6-3 vote, the U.S. Supreme Court ruled that the Trump administration does not have the authority to issue tariffs under the International Emergency Economic Powers Act (IEEPA). President Trump utilized IEEPA to justify emergency powers when imposing a variety of tariffs, including the 10 percent “baseline” tariff on all trading partners (“Liberation Day” tariffs), higher “reciprocal” tariffs on dozens of countries, drug trafficking tariffs on Canada, Mexico, and China, and the 145 percent effective rate on most Chinese goods.

The ruling does not impact Sec. 232 tariffs, such as those on steel and aluminum, and other sector specific levies, as well as Sec. 301 tariffs, and other levies using other authorities besides IEEPA. The Court did not address refunds for tariffs already paid, leaving it to the lower court to determine.

The Trump administration has pledged to utilize other statutes to impose country specific tariffs.

AED will provide for further updates and information, including next steps in the process and repayment considerations as they become available.