On February 20, 2026, the U.S. Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. Chief Justice Roberts, writing for the majority, held that tariffs are a core component of Congress’s Article I power to lay and collect duties. Any delegation of that authority must be clearly and expressly stated by Congress, and IEEPA contains no such delegation.
The decision invalidates every tariff imposed under IEEPA authority since February 2025. This includes the “fentanyl” tariffs on imports from China, Canada, and Mexico classified under HTS 9903.01 and the “reciprocal” tariffs under HTS 9903.02.
What was struck down
The ruling covers all IEEPA-based tariff programs without exception. The initial 10-25% duties on Chinese goods imposed in early February 2025 are invalidated. The subsequent escalation to 60% on certain product categories is invalidated. The 25% duties on Canadian and Mexican imports tied to the fentanyl executive orders are invalidated. The April 2025 reciprocal tariffs that affected virtually every U.S. trading partner are invalidated.
Other trade remedies remain unaffected. Section 232 steel and aluminum tariffs continue in force. Section 301 China tariffs continue in force. All antidumping and countervailing duties continue in force. Only tariffs imposed specifically under IEEPA authority are covered by this ruling. For importers with China-specific IEEPA exposure, the distinction between Section 301 and IEEPA tariff lines is critical and must be evaluated at the entry level.
The scope of the refund event
Every dollar paid in IEEPA duties between February 4, 2025, and February 24, 2026 — when CBP stopped collecting — is now eligible for refund. Current estimates from the Penn Wharton Budget Model place the total recoverable amount at approximately $166 billion across 330,000 U.S. importers of record.
The Supreme Court did not address refund mechanics. It did not order CBP to issue refunds automatically, nor did it establish a timeline or process for disbursement. That question moved immediately to the Court of International Trade, which subsequently issued its own March 4 order directing CBP to process refunds.
Immediate actions for importers
The most important immediate action is understanding your exposure. Importers should identify all entries filed during the IEEPA-affected period that contain HTS codes beginning with 9903.01 or 9903.02. Your customs broker can pull this data from CBP’s ACE portal using an ES-003 Entry Summary Details report. Our documentation guide details exactly which fields and reports you need.
For entries that have already been liquidated, the 180-day protest window under 19 U.S.C. Section 1514 is running. The earliest IEEPA entries — those filed in February 2025 — began liquidating approximately 314 days later, around December 2025. Those protest windows will begin closing in June 2026. Filing a protective protest preserves your refund rights regardless of what happens with the broader refund process.
For unliquidated entries, importers can file Post-Summary Corrections through their customs broker to remove the IEEPA duty lines before CBP finalizes the entry. This is the fastest government recovery path, and our four recovery paths analysis compares all available options side by side.
Claim assignment as an alternative
Importers who prefer not to wait for the government process can also explore immediate capital through claim assignment. This involves assigning a validated refund claim to an institutional buyer in exchange for non-recourse payment, typically within 14-21 business days. The buyer assumes all CBP processing risk.
How to assess your position
An Impact Assessment is the first step regardless of which recovery path you pursue. It identifies every affected entry, calculates your estimated refund including statutory interest under 19 U.S.C. Section 1505(c), maps the liquidation status of each entry, flags approaching protest deadlines, and presents your recovery options. Request a confidential Impact Assessment to determine your exact exposure before any deadlines pass.
Customs brokers and trade attorneys who advise importers may also benefit from understanding how the partner referral program works alongside the assessment process.
The path forward
The ruling is final. The only remaining questions are procedural: how will CBP process refunds through the CAPE system, how long will it take, and what do importers need to do to secure their position in the queue. Those questions are now being answered by the Court of International Trade and CBP’s implementation team.
The importers who understand their position first will be best positioned to recover first — whether through the government process or through alternative paths. For a comprehensive walkthrough covering every aspect of the recovery process, see our complete guide to IEEPA tariff refunds. Visit our eligibility screening tool for an initial assessment of whether your import profile qualifies, or review how our recovery process works for a detailed walkthrough.
