In a stunning decision released Friday, February 20, 2026, the U.S. Supreme Court struck down a large portion of tariffs imposed by President Trump on the basis of a 1977 law known as the International Emergency Economic Powers Act (IEEPA).
Chief Justice John Roberts ruled that IEEPA does not give the president the sweeping authority to impose tariffs. The opinion notes that taxation has always been a core power of Congress, not the president, and that the statute does not alter that dynamic by giving the executive branch a unilateral power to impose new taxes. Roberts applied the “major questions doctrine,” which holds that Congress must explicitly authorize policies with major nationwide impact, and that no prior president had ever used IEEPA to impose tariffs. The major questions doctrine has been used by the Court in other cases to strike down executive overreach in other cases, including a 2021 decision, West Virginia v. EPA, which invalidated the Biden administration’s attempt to use the Clean Air Act to regulate carbon dioxide emissions.
The decision reached “reciprocal” tariffs imposed by President Trump on goods from Canada, China, Mexico, Brazil, and Ukraine. The decision does not affect tariffs on steel and aluminum, although tariffs on these items may be subject to a separate challenge as well.
Businesses affected by the tariffs may be eligible for a refund, but need to act quickly.
According to scholars at the University of Pennsylvania, the government may be liable for $175 billion in refunds to businesses that imported goods from Canada, China, Mexico, Brazil or Ukraine.
Demands for a refund can be filed either with the U.S. Court of International Trade under 28 U.S.C. § 1581 or by seeking administrative relief from U.S. Customs and Border Patrol, depending on the circumstances. Thousands of claimants have already filed lawsuits with the Court of International Trade in New York City, many of which are likely to be consolidated into either a class action or multi-district litigation panel (MDL). If your business was the “importer of record” for goods from any of the countries listed above, and this administration’s tariffs cost your company $10,000 or more in additional taxes, contact the Law Offices of G. Martin Meyers today.
Our attorneys are ready to answer your questions about this momentous decision and are ready to discuss your options, which may include seeking administrative relief through U.S. Customs or by filing a demand for a refund directly with the Court of International Trade.
