In a landmark decision issued today, the U.S. Supreme Court ruled that a large portion of the tariffs imposed by former President Donald Trump’s administration under the International Emergency Economic Powers Act (IEEPA) were illegal. The Court found that IEEPA does not grant the president authority to levy permanent tariffs on imports, rendering about 55 % of the $200 billion in duties collected since 2025 unlawful.
The ruling, delivered in _Learning Resources, Inc. v. Trump_, means that many of the “trafficking” and “reciprocal” tariffs on goods from Canada, Mexico, China and other nations must be halted immediately. Importers who have already paid these duties are now eligible to seek refunds, a process that could involve billions of dollars and thousands of protective cases already filed in the U.S. Court of International Trade.
Chief Justice Roberts, writing for the majority, emphasized that emergency economic powers cannot be stretched to create a “tax on imports” without clear congressional authorization. The decision does not affect tariffs imposed under other statutes—such as Section 232 on steel and aluminum or Section 301 on Chinese intellectual‑property practices—so those duties remain in place.
The Treasury Department warned that the ruling could erase roughly $100 billion in annual revenue and trigger a wave of refund claims, while businesses brace for a short‑term scramble to adjust supply‑chain costs and customs classifications. The administration signaled it will explore alternative legal tools to maintain its trade agenda, but for now, the Court’s order forces a rapid rewrite of hundreds of tariff lines.
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