Client Alert: Supreme Court Rules President Lacks Authority to Impose Tariffs Under IEEPA
- The Supreme Court ruled that IEEPA does not authorize the President to impose tariffs in a 6-3 decision.
- The Supreme Court did not address how tariffs will be refunded to importers. Resolution of that process will now be in the hands of the lower courts.
In a significant ruling on executive power, the Supreme Court has held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. This decision strikes down tariffs that President Trump imposed on imports from Canada, Mexico, China and other trading partners following declarations of national emergencies related to drug trafficking and trade deficits. Critically, the Court did not address how tariffs will be refunded to affected importers.