Supreme Court Invalidates IEEPA Tariffs: What Importers and Global Businesses Should Do Now

The U.S. Supreme Court has ruled that all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful, concluding that they exceeded the President’s statutory authority. This decision affects only IEEPA‑based tariffs and does not invalidate other existing tariff programs. While the ruling removes the legal basis for these tariffs, it does not guarantee refunds, and the Administration has signaled it may move quickly to impose replacement tariffs under other statutes.

For businesses, the immediate takeaway is uncertainty, not relief. Businesses should act now to preserve potential recovery rights and prepare for near‑term tariff continuity.

What the Court Decided and What It Did Not

The Court invalidated the IEEPA tariffs in full, but it did not order refunds of duties already paid. Whether refunds will be issued, and through what mechanism, remains unclear. Administration officials have publicly suggested that refunds may not occur, although it is more likely that this issue will ultimately be decided by ongoing litigation in lower courts. Although the timing and mechanism of refunds remain unclear, businesses that act early will be best positioned to protect their rights and maximize potential recovery.

Near‑Term Outlook: Expect Tariff Continuity, Not a Pause

Despite the Court’s ruling, the Administration has made clear it intends to re‑implement similar tariffs under alternative statutory authorities. Indeed, the Trump Administration has already taken action to this effect with an announcement that a global 10% tariff will be instituted on nearly all products imported into the United States for a period of 150 days, effective February 24, 2026. The President has also signaled that this new global tariff may be increased to 15% in the near term. In addition, the U.S. Trade Representative in recent weeks has emphasized that the Administration is prepared to implement tariffs via separate statutory authorities, including Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act. Ultimately, businesses should plan for continued tariff exposure despite today’s Supreme Court decision.

What Businesses Should Be Doing Now

Given the uncertainty around refunds and the institution of new tariff programs, businesses should move quickly in three areas:

1. Preserve Refund and Recovery Rights

Businesses that paid IEEPA duties should evaluate whether to pursue administrative protests before CBP or litigation to preserve potential recovery. Waiting for clarity may forfeit rights.

2. Assess Financial Exposure

Businesses should document and quantify their IEEPA tariff payments and assess the impacts of the new 10% tariffs moving forward.

3. Prepare for Rapid Regulatory Changes

With new 10% tariffs instituted, and with the potential for additional tariff programs, businesses should be ready to respond operationally, including updating customs compliance processes and internal forecasting models.

Bottom Line for Decision‑Makers

This ruling removes the legal foundation of the IEEPA tariffs but does not remove tariff risk. The situation remains dynamic with unresolved refunds, new 10% tariffs and the potential institution of additional tariff programs. Businesses that proactively assess exposure and preserve their options will be best positioned, regardless of how the next phase of litigation and policy changes unfold. Manatt’s interdisciplinary team can help you navigate these complex issues in this rapidly evolving legal and regulatory landscape.