The Supreme Court of the United States has ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, resolving a significant dispute over executive authority in trade policy. While the decision settles the question of legality, it leaves important practical and policy questions unanswered, particularly for companies that paid duties under the invalidated measures.
McCarter & English partner Zack Hadzismajlovic spoke with Law360 about the scope of the ruling and its implications for importers. “I think that what they have said is that the authority that the president claims underpins the IEEPA tariffs doesn’t exist, and so these tariffs were unlawfully levied on American importers,” he said, adding that in that sense, “they’re saying everything.”
The opinion may have meaningful consequences for informal trade arrangements negotiated in parallel with the tariffs and for the process by which importers could seek recovery of duties already paid. It also raises operational questions about how US Customs & Border Protection might administer any potential refunds, including whether the Automated Commercial Environment portal could serve as the mechanism for identifying affected entries and issuing repayments.
The ruling represents a notable shift in the trade enforcement landscape. For companies that were subject to these tariffs, the practical impact may be just beginning to unfold.