On February 20, 2026, the U.S. Supreme Court (“SCOTUS”) in a 6-3 ruling determined that President Donald Trump’s use of the International Economic Emergency Powers Act (“IEEPA”) to impose tariffs was unlawful. In its decision, the SCOTUS stated: “When Congress grants the power to impose tariffs, it does so clearly and with careful constraints. It did neither in IEEPA.”
The decision also held that the U.S. Court of International Trade (“CIT”) is the proper forum to hear challenges to IEEPA-based disputes, a limited procedural victory for the Trump administration. The ruling signals that the CIT will now oversee the tariff refund process to be administered by U.S. Customs and Border Protection (“CBP”) for importers seeking refunds on entries subject to IEEPA duties, while confirming that the CIT retains jurisdiction to adjudicate any disputes arising from those claims.
Ultimately, the SCOTUS ruling was not entirely surprising. During oral arguments, several justices challenged whether the IEEPA grants a president the authority to impose tariffs. For additional analysis on the oral arguments, see Update of November 7, 2025.
Notwithstanding the SCOTUS ruling, tariffs implemented under other statutory authorities by President Trump, such as those imposed under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Adjustment Act of 1962, remain in effect.
How the Trump administration will respond to the SCOTUS decision remains uncertain, including the timing and mechanics of any tariff refund process. President Trump has repeatedly emphasized that tariffs are central to his economic and foreign policy agenda. The Trump administration may now issue new executive orders implementing tariffs that rely on other statutory authorities.