SCOTUS Strikes Down All IEEPA Tariffs
Feb. 20, 2026
On Feb. 20, 2026, the Supreme Court of the United States ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not allow the President to levy tariffs. The opinion was authored by Chief Justice Roberts.
What Did the Court Find?
The Court found that IEEPA does not include a tariff power and that the use of IEEPA to apply sweeping tariffs violated the “major questions doctrine.” The doctrine states that the Executive Branch must have clear authorization from Congress to take action with large economic and political significance. By the Court invalidating IEEPA tariffs entirely, importers who paid IEEPA tariffs to the government will be entitled to a refund.
What’s Next?
The Court of International Trade (CIT) will determine the process for businesses to seek refunds. In December, CIT affirmed its authority to issue refunds even if a tariff entry had been liquidated. The Administration is expected to use other tools, such as Section 232 and Section 301 tariffs, to maintain its tariff policy.
Tariffs Affected By The Supreme Court Decision
- Fentanyl Tariffs: The tariffs on Mexico, Canada and China related to the flow of fentanyl into the United States, initially levied in February 2025, are invalidated effective immediately.
- Reciprocal Tariffs: Tariffs placed on nearly all nations starting in April 2025 are invalidated effective immediately.
Not Affected By The Supreme Court Decision
- Section 301: Tariffs already in effect on Chinese masks, gloves and syringes are not affected by this decision.
- Section 232: Tariffs levied through Section 232 national security investigations remain in place. The pending investigation by the U.S. Department of Commerce into tariffs on medical products could result in new tariffs on medical products. Commerce is required to complete its investigation no later than May 30, 2026.
HIDA Tariff Webinar: Feb. 25
Register here for this Feb. 25 webinar covering the Supreme Court decision and what it means for the medical supply chain.
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