In a landmark 6–3 decision, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unconstitutional, effectively ending one of the most sweeping uses of executive tariff authority in modern trade history.
For importers, the implications are massive — not just for future policy, but for billions in duties already paid. The decision marks a new chapter in U.S. trade law, one where Congress reclaims sole authority over tariff policy, and where importers may be entitled to significant refunds if they act fast.
What Happened?
The Court ruled in Learning Resources, Inc. v. Trump that IEEPA does not grant the President power to impose tariffs. Tariffs are taxes, and under the Constitution, only Congress can impose taxes — full stop.
This strikes down:
- The “reciprocal tariffs” imposed in 2025,
- Emergency tariffs targeting China, Canada, and Mexico under border and fentanyl-related declarations,
- Any future tariff regimes based solely on IEEPA.
The majority opinion (Roberts, joined by a rare coalition of conservative and liberal justices) was blunt: IEEPA is not a blank check for rewriting the tariff code.
What’s Still in Place?
This ruling affects only IEEPA-based tariffs. Tariffs under other laws remain active, including:
- Section 301 tariffs on China,
- Section 232 tariffs on steel, aluminum, autos, and more,
- Section 201 safeguard tariffs.
These authorities may still be used to implement future trade measures, so while this ruling limits executive power, tariff risk hasn’t gone away.
Are Refunds Coming?
Possibly — but not automatically.
The Supreme Court ruled that IEEPA tariffs are invalid, opening the door to refund claims for duties paid under them. However, recovery depends on action, specifically:
- Whether importers filed protective protests or legal actions,
- Whether entries are still within the 180-day protest window,
- Whether CBP issues administrative guidance for bulk refunds or requires entry-by-entry protests.
This is where importers must move quickly.
What Should You Do Now?
Everglory Logistics recommends immediate action to protect your refund rights:
Audit Your Entries
Identify every entry subject to IEEPA tariffs. Focus on entries from April 2025 through February 2026.
Check Liquidation Dates
Under 19 U.S.C. §1514, you have 180 days after liquidation to file a protest. If that deadline is approaching, act now.
Document Your Payments
Organize entry numbers, dates, duty amounts, and tariff codes. Clean records will be essential for any refund process.
Engage a Broker or Trade Attorney
Whether or not Everglory handled the customs clearance, a licensed broker or trade compliance attorney can help determine which entries are eligible for protest or litigation.
What Everglory Is Doing for Clients
We are already talking to our customers and coordinating with customs brokers and legal teams to identify eligible refunds.
If you have worked with Everglory during the IEEPA tariff period and believe you paid duties under these now-invalid tariffs, we want to hear from you. We’ll help you understand your options and work with you to take the right next steps.
The Bigger Picture
This ruling isn’t just a win for trade compliance—it’s a reassertion of the constitutional limits on executive power in trade.
But it also introduces new uncertainty. Future administrations may still use other legal pathways to impose duties. Importers must remain agile, informed, and strategic.
Final Takeaway: Act Now, Not Later
If you paid IEEPA-related duties between 2025 and 2026, you may be owed a refund — but hope is not a strategy. Timely protests and clean documentation are your best defense.
Don’t miss your window. Contact Everglory Logistics today.
We’ll help you track your entries, preserve your rights, and stay one step ahead in this shifting trade environment.
