The Supreme Court ruled on Feb. 20 that President Donald Trump exceeded his legal authority by imposing wide-ranging tariffs under powers reserved for true national emergencies. Chief Justice John Roberts, writing for the majority, stated that the president did not have clear congressional authorization to use the International Emergency Economic Powers Act (IEEPA) to impose these tariffs. “When Congress grants the power to impose tariffs, it does so clearly and with careful constraints,” Chief Justice John Roberts wrote, and then added, “It did neither here.”
In a 6-3 decision, the justices in the majority found that the statute Trump cited does not allow the president to institute tariffs unilaterally in the absence of congressional authorization. “There is no exception to the major questions doctrine for emergency statutes,” Chief Justice John Roberts said in reference to the doctrine that the Supreme Court used previously to strike down President Joe Biden’s student debt forgiveness program.
While the ruling leaves untouched certain tariffs, such as those on steel and aluminum implemented through other legal channels, it strikes down two major categories: country-specific tariffs, including rates up to 34% for China, and a 25% tariff on goods from Canada, China, and Mexico related to fentanyl concerns.
The dissent, led by Justice Brett Kavanaugh and joined by Justices Clarence Thomas and Samuel Alito, warned of significant potential impacts on the U.S. Treasury, as companies affected by the overturned tariffs may seek refunds. Hundreds of businesses have already filed lawsuits for compensation. Justice Kavanaugh said of these refunds, “The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a ‘mess,’ as was acknowledged at oral argument.” As of December 2025, the Government collected more than $133 billion in import taxes imposed under the Trump administration’s emergency powers law.
This decision highlights the need for clear legislative support for broad executive actions in trade policy. The Trump administration may try to reinstate some tariffs under different statutes. The ruling reinforces the limits of presidential authority in this area.
Taxpayers who previously incurred taxes on their imports under the Trump administration’s emergency powers law should evaluate filing refund claims with the Court of International Trade. We will be providing more information on how to file for refunds in the near future.
The scope of such refund claims should focus on imports that were subjected to tariffs specifically under the Trump administration’s emergency powers law, and should be corroborated by liquidation status, entry summaries, and proof of payment.
CBIZ will continue to keep you informed of additional developments. If you have questions, please contact our National Tax Office professionals.
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