Supreme Court overturns IEEPA tariffs; industry awaits guidance on refunds and next steps

This morning the U.S. Supreme Court (SCOTUS) confirmed the lower court’s holdings that the International Emergency Economic Powers Act, commonly referred to as IEEPA tariffs, are contrary to law and therefore invalid. This impacts the IEEPA Fentanyl-related tariffs and the IEEPA reciprocal tariffs.

As noted by Justice Kavanaugh, “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers.”

 The case has been remanded to the Court of International Trade (CIT) to reconsider the permanent injunction and determine the method and scope of refunds.

This decision does not provide guidance on the process for potential refunds or the necessary administrative steps. Accordingly, there is currently no immediate action that can be taken or required from importers while further clarification is pending from CIT and US Customs and Border Protection (USCBP) regarding implementation and next steps including direction as to whether IEEPA tariffs will no longer be necessary on ongoing entries.

We are monitoring closely the developments, and we will provide updates as more information becomes available.