The Supreme Court just reshaped the United States’ trade policy — here is what the landmark 6-3 ruling on IEEPA (International Emergency Economic Powers Act) tariffs means for your supply chain, potential refunds and the broader economy.

In a massive shift for international trade, the U.S. Supreme Court struck down the sweeping global tariffs imposed by the Trump Administration over the past year. The Court’s ruling ultimately curbs the executive branch's power to unilaterally hike import taxes; however, it also leaves billions of dollars in limbo for businesses importing physical goods into the U.S. With that, international companies are working to understand what is next and how to claim back what was already paid. 

The Supreme Court tariff ruling significantly impacts businesses with global operations. Here is a summary of where things stand today, what remains uncertain and the steps business leaders can take:

THE RULING: IEEPA TARIFFS ARE UNCONSTITUTIONAL

The Supreme Court ruled that President Trump exceeded his authority by using the IEEPA to impose unbounded global tariffs. Chief Justice John Roberts clarified that the power to tax — and set U.S. import taxes — belongs strictly to Congress.

What this means: The blanket "Liberation Day" tariffs under IEEPA are no longer applicable. However, sector-specific levies under different laws (like the Section 232 tariffs on steel and aluminum) remain fully in effect. 

THE UNKNOWN: WHAT THIS MEANS FOR TARIFF REFUNDS

The biggest question left completely open by the Court is what happens now to the estimated $160 to $175 billion in tariffs businesses have already paid. The ruling did not mandate automatic refunds. Instead, it punted the issue to the U.S. Court of International Trade. 

What this means: Businesses hoping to secure a refund will likely face a complex bureaucratic and legal battle; and sitting on the sidelines could mean forfeiting the right to recovery.

THE RIPPLE EFFECT: OBBBA AND THE FEDERAL BUDGET DEFICIT

The fallout of this ruling extends beyond trade and directly impacts the federal budget. While the One Big Beautiful Bill Act (OBBBA) delivered sweeping tax relief, it also added trillions of dollars to the national debt. The Administration relied heavily on the immense revenue from these now-illegal IEEPA tariffs to partially offset the cost of the OBBBA tax policy.

What this means: Without that tariff revenue, the U.S. faces a significantly widened federal budget deficit, removing a key financial pillar of the Administration's economic agenda.

THE STOPGAP: NEW SECTION 122 TARIFFS

The Administration is not backing down. In immediate response to the ruling, a new 15% temporary global tariff was announced under Section 122 of the Trade Act of 1974. This acts as a 150-day stopgap measure, meaning supply chain costs will remain volatile in the short term.

NEXT STEPS FOR U.S. IMPORTERS

Addressing this turbulence requires immediate action to protect your business’s bottom line:

  • Secure Your Records: Gather all customs entry summaries (CF 7501), commercial invoices and proof of IEEPA tariff payments from the past year. Do not rely solely on digital portals; maintain local backups
  • Track Liquidation Dates: Entries generally liquidate 314 days (approximately 10 months) after entry. Work with your broker to monitor these dates and consider filing extensions to keep entries open
  • Adjust Pricing Models: Factor the new 150-day 15% Section 122 tariffs into your immediate financial forecasting
  • Consult Trade Counsel: Reach out to your legal and tax advisors immediately to discuss filing protective actions in the Court of International Trade to preserve your place in line for a refund

The trade environment is moving fast, and new developments are likely to materialize in the near term. GHJ’s International Tax Practice is closely monitoring updates to determine what this means for your business. Contact the team with specific questions about how to address changes in the global trade landscape.