February 2026 | Client Alert
Today, the U.S. Supreme Court issued a landmark decision holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. As a result, tariffs imposed solely pursuant to IEEPA lack statutory authority and are invalid.
In Learning Resources v. Trump, 607 U.S. ___ (2026), the Court concluded that Congress did not delegate tariff‑imposition authority to the President under IEEPA. While IEEPA permits the Executive to “regulate” importation in response to declared national emergencies, the Court held that this language does not encompass the imposition of customs duties, which are a core congressional taxing power.
The ruling is confined to tariffs imposed under IEEPA. The Court emphasized that Congress has expressly authorized tariff authority in other statutes (e.g., Section 232 of the Trade Expansion Act and provisions of the Trade Act of 1974), leaving those regimes untouched. Nevertheless, tariffs imposed exclusively under IEEPA are now legally vulnerable.
Importantly for importers, the Court’s opinion is silent on whether previously collected IEEPA tariffs must be refunded. The majority neither ordered refunds nor prohibited them. Refund litigation is therefore likely to follow, and the government’s position on repayment remains uncertain.
O’Neill & Borges has attorneys admitted to the U.S. Court of International Trade and we are prepared to assist clients in evaluating the impact of this decision, including assessing potential refund opportunities, preserving and filing claims, and advising on strategic next steps in light of this ruling.
For any questions regarding this matter, please contact your primary O’Neill & Borges attorney.
This O’Neill & Borges Client Alert is prepared for general information purposes only. It does not constitute legal advice or a legal opinion; nor does it establish an attorney-client relation with the recipient. For further information or to establish an attorney-client relation please contact us at info@oneillborges.com or your prime contact attorney at O&B.