Quick answer: In February 2026 the Supreme Court ruled that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. Questions about refunds and replacement duties have followed.
What the Court Decided
According to the National Constitution Center’s term review, the justices ruled 6-3 in Learning Resources v. Trump that the law the administration relied on does not give the president power to impose tariffs. SCOTUSblog also covered the ruling, after months of legal challenges that began in the fall of 2025.
Questions That Followed
Legal analysts pointed to several unresolved issues:
- Refunds: whether and how importers who paid the duties could get money back.
- Replacement tariffs: whether the administration could reimpose similar duties under other legal authorities.
- Presidential power: how the reasoning affects trade powers more broadly.
Why It Matters for Businesses and Shoppers
Tariffs raise the cost of imported goods, and those costs can be passed on to businesses and consumers. Changes in their legal status can affect prices, supply chains and planning. Importers have been watching refund procedures and any new trade measures closely. Interest-rate decisions also interact with prices. See what to watch at the October Fed meeting.
What to Do
- Importers: speak with a customs broker or trade attorney about your specific situation, since procedures continue to develop.
- Small businesses: review supplier contracts and pricing assumptions.
- Consumers: expect price effects to vary by product and over time.
For the wider context of the Court’s term, read our Supreme Court term in review.
Frequently Asked Questions
Are all tariffs now illegal?
No. The ruling concerned tariffs imposed under one specific law. Other tariff authorities exist, and rules differ by product and country.
Can I get a refund?
Refund questions were unresolved after the ruling. Check current government guidance or ask a trade professional.
Sources consulted: National Constitution Center, SCOTUSblog, Law360. Check current government guidance for the latest status. This is general information, not legal advice.