Supreme Court Ruling: IEEPA Duties Deemed Unlawful

The Supreme Court of the United States (SCOTUS) ruled today in a 6-3 decision that use of the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs, reaffirming that tariff and tax authority belongs to Congress.

The IEEPA ruling invalidates the following duties:

• Reciprocal tariffs applied broadly by country; and
• Duties tied to fentanyl/emergency declarations (imposed on Canada, Mexico, and China.)

It is very important for importers to note that this ruling does not apply to the following tariffs, that are still in effect:

• Section 232 tariffs on steel, aluminum, and copper, and
• Section 301 China tariffs and other non-IEEPA duties.

The decision still poses many unknowns, including:

• The official date of implementation, when duties under IEEPA will cease to be collected;
• If, how, and when refunds will be issued.  This is a key question that will be determined by the Court of International Trade (CIT); and
• Whether or not the ruling impacts other trade agreements.

In addition to the CIT, U.S. Customs and Border Protection (CBP) and the U.S. Treasury Department will issue guidance in the coming weeks.  It is anticipated that the Trump Administration will be reviewing other legal mechanisms to impose tariffs.

A.N. Deringer, Inc. will be continuously monitoring White House, CIT, CBP, and Treasury for new developments and guidance, as well as consulting our legal partners to keep our customers and stakeholders apprised as soon as new information becomes available.

Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.