Supreme Court Invalidates IEEPA Tariffs, Limits Presidential Trade Authority

Washington, D.C., Friday, February 20th, 2026:

The United States Supreme Court has ruled that President Donald Trump exceeded his statutory authority when imposing certain tariffs under the International Emergency Economic Powers Act (IEEPA). The Court held that IEEPA does not authorize the President to impose tariffs, concluding that the law, which is reserved for national emergency powers, cannot be used as a basis for broad trade measures. 

As a result of the decision, the Court invalidated the country-by-country (“reciprocal”) tariffs, as well as the tariffs imposed on imports from Canada, China, and Mexico that the administration justified on the grounds of those countries’ alleged failure to curb the flow of fentanyl into the United States. 

The ruling does not affect all existing tariffs. Tariffs imposed under other statutory authorities—including Section 232 tariffs on steel and aluminum—remain in effect, as they were enacted pursuant to different laws not addressed by the Court. 

Importantly, the Supreme Court’s decision does not address whether, or how, the federal government must return the billions of dollars in duties already collected under the now invalidated IEEPA tariffs. 

In a related development, on December 15, 2025, the U.S. Court of International Trade (CIT) ruled that it has the authority to order reliquidation, and refunds of duties collected under IEEPA should the Supreme Court ultimately find those tariffs unlawful. In that decision, the CIT declined to issue a preliminary injunction to halt liquidation of affected entries, reasoning that importers would not suffer irreparable harm because refunds could be provided through court-ordered reliquidation. 

The CIT further noted that the U.S. Government has acknowledged the court’s authority to order such reliquidation and refunds and has indicated it will not oppose those actions if ordered. 

Additional guidance regarding the implementation of the Supreme Court’s ruling and any refund or reliquidation procedures is expected to follow through the courts and relevant federal agencies. 

Are you curious about what this means for your supply chain? Get in touch with our Trade Consulting team via the Crane Worldwide Tariff Response Unit.