Supreme Court Issues Ruling Invalidating Trump Administration Tariffs Under International Emergency Economic Powers Act

On February 20, the U.S. Supreme Court (SCOTUS) issued an opinion invalidating the Trump administration’s International Emergency Economic Powers Act (IEEPA) tariffs. In a 170-page opinion, the Court held that the IEEPA does not authorize the broad tariffs that were imposed, meaning those tariffs are legally invalid going forward. The opinion does not order refunds or set a detailed refund process — that will be determined through administrative and judicial procedures.

Despite uncertainty about how the process will unfold, companies will want to immediately gather and verify all import data related to IEEPA tariffs:

• Identify all import entries subject to IEEPA tariff rates
• Determine whether entries are liquidated or unliquidated, as this affects the available refund mechanisms
• Collect entry summaries, tariff classifications, duty payments, and proof of payment from systems like Automated Commercial Environment (ACE)

Ensuring good internal documentation now will streamline any protests or legal filings later. Once the refund process is formally announced or enabled:

• For unliquidated entries, companies will likely want to file a Post Summary Correction (PSC) to correct the entry and remove the IEEPA duty
• For liquidated entries, companies will likely have to take higher-effort paths, which may include one of the following:
  • Lodging a formal protest with Customs and Border Protection (CBP) within the statutory deadlines to secure a refund
  • Litigation in the U.S. Court of International Trade if the protest is denied or if proactively seeking judicial relief

The federal government and CBP are expected to issue guidance on the procedures for refund claims, timelines for when refunds will begin, and any special mechanisms or administrative processes specific to IEEPA duties. We will keep monitoring this developing situation, but in the meantime, it is important to plan beyond the ruling. The Trump administration has made clear it will quickly implement a “Plan B” using other tools to impose tariffs in response to an unfavorable SCOTUS ruling.

For any assistance or questions about this alert, we encourage you to contact the authors.