The U.S. Supreme Court has ruled against the International Emergency Economic Powers Act (IEEPA), invalidating the sweeping tariffs imposed by the U.S. administration on imports under this law. As reported by NPR, the Court held that only Congress has the power to authorize tariffs.
According to a report by American Shipper, citing U.S. Customs and Border Protection data from the court report, nearly $130 billion may be subject to tariff refunds.
The administration has other ways to impose tariffs under laws unaffected by the ruling, even though those alternatives may be more limited. According to a fact sheet released by the White House on February 20th, the U.S. President invoked his authority under section 122 of the Trade Act of 1974 to implement a 10% import duty on goods coming into the U.S. The temporary import duty will take effect on February 24 and will remain in place for 150 days.
The Office of the United States Trade Representative (USTR) has also been instructed to use its Section 301 authority to review practice that may be negatively affecting U.S. trade. American Shipper reported that this development could lay the groundwork for more targeted tariffs applied to specific countries
These developments come as U.S. retailers prepare for a softer import outlook in the months ahead. According to a recent analysis by the National Retail Federation and Descartes, inbound volumes are projected to ease in early 2026 as importers adjust inventory positions amid the ongoing uncertainty.
Source: NPR, American Shipper, The White House