In a ruling dated 20 February 2026, the Supreme Court of the United States ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President the authority to impose tariffs.
Ruling of the International Trade Court
On 4 March 2026, the United States International Trade Court ruled that tariffs imposed under the IEEPA are unlawful and must be refunded. Furthermore, the court ordered that imports not yet finalised must be settled without IEEPA duties, and that cases already processed but not yet finalised must be recalculated accordingly.
Scope of the refund
The court clarified that the refund scheme applies to all importers and not just those who brought the action.
Current status of implementation
Implementation of this order is currently suspended as the existing US customs system is technically unable to process the large number of cases. The US Customs and Border Protection agency is therefore developing new functions within the ACE digital system to handle the refund process centrally and automatically.
Implications for importers
For importers, this means that there will be no automatic refunds. Refunds must be actively applied for via the new customs system. Furthermore, refunds will only be considered if the duties are based on the IEEPA and not on other legal grounds, such as Section 301.
The new function in the customs system is designed to allow importers to submit their applications online in batches. The system automatically checks the data, removes the relevant IEEPA duties from the declarations, recalculates duties and interest, and then initiates the electronic payment. The introduction is to take place in stages.
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Declaration of Brandon Lord responding to March 6, 2026 Court Order
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