Supreme Court Strikes Down Reciprocal Tariffs Levied Under IEEPA

In Learning Resources, Inc. v. Trump, the Supreme Court issued a 6-3 decision striking down President Trump's broad tariffs imposed under the International Emergency Economic Powers Act of 1977 (IEEPA). The Court held that IEEPA does not authorize the President to unilaterally impose tariffs. The Court determined that IEEPA's language permitting the President to regulate “imports” during a national emergency does not constitute clear authorization to levy sweeping tariffs.   

What You Need to Know  

These tariffs are invalidated: 

• Reciprocal tariffs imposed on April 2, 2025, effective April 9, 2025, against many U.S. trading partners 
• 25% tariffs on goods from Canada, China and Mexico imposed under the fentanyl-related emergency declarations (beginning February 2025)  

These tariffs remain in effect: 

• Section 232 tariffs (steel and aluminum) 
• Section 301 tariffs (Chinese goods relating to unfair trade practices) 
• Any tariffs imposed under other statutory authorities 
• Section 122 tariff—10% global tariff announced February 20, increased to 15% on February 21

The Administration’s Response 

The Trump Administration anticipated this decision and is already using other avenues to reimpose tariffs through alternative authorities (i.e., Sections 122, 301, and/or 338). As expected, the Administration announced a global tariff of 10% under Section 122 just a few hours after the decision was handed down, effective February 23, 2026. This was increased to 15% on February 21, 2026, with several carve-outs.  

Section 122 is the most immediate action the Administration may take, as it allows the President to impose tariffs of up to 15% for up to 150 days to address a "large and serious" U.S. balance-of-payments deficit. After the 150 days end, Congress must approve the tariffs.   

Section 301 empowers the U.S. to impose tariffs in response to unfair or discriminatory trade practices by foreign countries, but requires a formal investigation process that can take up to nine months before the tariffs take effect.  

Section 338 authorizes the President to impose tariffs of up to 50% on imports from countries that discriminate against U.S. commerce, though it has not been used since 1949.  

What You Need to Do 

For EisnerAmper clients affected by the invalidated IEEPA tariffs, we recommend the following steps: 

One outstanding question is whether impacted companies will be able to obtain refunds of tariffs. The majority opinion did not contemplate refunds of the tariffs; and the Administration has indicated it has no intent to begin refunding these payments. It is possible that the issue of tariff refunds will be determined by lower courts, and may take years to be fully settled.   

 Who You Should Call

While this ruling offers some relief, the Administration has made it clear that it intends to continue using tariffs as a key part of its economic policy. EisnerAmper has partnered with several tariffs, customs, and duties legal advisors to offer assistance with tariff refund applications or specific legal advice. If you have questions or want to discuss, reach out to a member of our international team below.