Supreme Court rules IEEPA does not authorize tariffs
The Supreme Court held that IEEPA does not authorize presidential tariffs; current calculations here exclude that layer. This does not remove ordinary or Section 301 duties or restore duty-free low-value shipments.
Our read
The ruling removes the duties imposed under IEEPA; general and Section 301 duties still apply. A Chinese knit cotton T-shirt now totals 36.5%, and 12.5% of that is a separate layer added in July, unrelated to the ruling. Reprice with current rates, and take your entry records to your broker about IEEPA duty already paid.
Key dates
- Published; Takes effect
- We checked the official text
Who is affected
- Sellers whose quotes or past entries include tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including the challenged reciprocal and drug-trafficking tariffs.
- Importers that paid those duties need to review individual entries and the subsequent procedural route. The decision date is not a promised refund date.
- Ordinary duties, Section 301 duties and low-value filing requirements cannot simply be removed on the strength of this opinion. Its question is whether IEEPA authorizes tariffs.
Run the numbers
| Duty layer | Applied to declared value | Duty |
|---|---|---|
| General | $20 × 16.5% | $3.30 |
| Earlier China Section 301 | $20 × 7.5% | $1.50 |
| New Section 301 | $20 × 12.5% | $2.50 |
| Total | $20 × 36.5% | $7.30 |
What to do
- Identify the legal basis for each duty layer in your cost sheet and check whether an obsolete IEEPA layer remains in current quotes.
- Reprice using today’s classification, origin and other applicable duties; the court’s decision date does not establish every current rate.
- For past payments, retain entry numbers, duty breakdowns, payment records and importer details, then ask the broker to confirm the applicable process and deadlines.
What the official text says
So too here; the terms of IEEPA do not authorize tariffs.
IEEPA contains no reference to tariffs or duties.