Published by M. E. Dey & Co. News, February 21, 2026
What Did the Supreme Court Rule?
The U.S. Supreme Court ruled that the President does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs.
The case centered on President Trump’s use of IEEPA to implement broad tariffs on multiple countries, including so-called “reciprocal” tariffs and additional levies tied to concerns over trade imbalances and fentanyl trafficking. In a 6–3 decision, the Court held that IEEPA does not authorize the imposition of tariffs. The majority concluded that the statute does not provide clear congressional authorization for such action and that no previous president had used the law to implement duties.
The ruling affirms a lower court decision that found the administration exceeded its authority under IEEPA. However, the Supreme Court did not resolve all related legal issues. It left questions about remedies and implementation to the lower courts, particularly the U.S. Court of International Trade (CIT), which is expected to determine next steps.
In short, the Court struck down tariffs imposed specifically under IEEPA, but it did not prohibit the use of other trade authorities.
The Section 301 tariffs imposed on China and the Section 232 tariffs for auto, steel, aluminum and copper, all of which Trump imposed, are all still valid and not impacted by this ruling.
What Tools Does the Trump Administration Still Have to Impose Tariffs?
Although IEEPA is no longer available as a basis for tariffs, several alternative statutory tools remain, and President Trump has made it clear that he intends to use them:
Section 122 of the Trade Act of 1974
This provision allows the President to impose tariffs of up to 15% for up to 150 days without a lengthy investigation process. It can be used immediately, but tariffs beyond the 150-day window would require congressional approval. President Trump has indicated he would use this authority to implement a 10% global tariff on 2/20 and has already increased it to the maximum 15% on 2/21. The temporary import duty will take effect on February 24 at 12:01 a.m. ET.
Section 338 of the Tariff Act of 1930
This statute allows tariffs of up to 50% on countries found to discriminate against U.S. commerce. While powerful, it is more targeted and less sweeping than the IEEPA-based tariffs that were invalidated.
Section 232 of the Trade Expansion Act
This authority allows tariffs based on national security concerns (e.g., steel and aluminum). However, it requires investigations and formal findings before duties can be imposed, making it slower and more procedural.
Trade Investigations and Negotiated Measures
The administration can also initiate new trade investigations under existing trade statutes like Section 301. These processes typically require study, public comment, and agency review before tariffs are applied.
Key Limitation:
None of these tools are as broad or as immediately expansive as IEEPA. Most require procedural steps, investigations, or time limitations. As a result, there may be gaps in timing or scope compared to the tariffs that were struck down. The main difference is that Trump cannot act without approval, and if our government checks and balances are in place, we can hope that additional tariffs will not be frivolously applied.
Is There a Refund Process for Companies That Paid IEEPA Tariffs?
At this stage, there is no defined refund process.
The Supreme Court did not address whether importers must be refunded tariffs previously collected under IEEPA. Over the past year, those tariffs are estimated to have generated at least $160 billion in revenue.
The issue of refunds is expected to be addressed by the U.S. Court of International Trade. That court is currently handling numerous cases filed by companies seeking repayment. It remains unclear:
- Whether refunds will be automatic or require individual claims
- Whether cases will be consolidated
- How repayment would be structured
- Whether any replacement tariffs could be imposed retroactively
Legal experts have warned that any refund process could be complex, particularly since many importers have already passed costs along to customers.
Until the Court of International Trade provides guidance, businesses remain in a holding pattern regarding both repayment and future tariff exposure.
Bottom Line for Importers and Logistics Companies
- Tariffs imposed under IEEPA have been struck down.
- The administration retains other legal avenues to impose tariffs, but they are narrower or time-limited.
- Refunds are possible but not yet defined.
- Further litigation and regulatory guidance are expected.
We do not yet have clarity on effective dates, collection pauses, or potential refund mechanics. Businesses should monitor developments closely as the lower courts determine implementation details.

