# Supreme Court rules IEEPA does not authorize tariffs

https://storecalc.com/en/updates/ieepa-ruling.html

- Topic: Duties
- Published: 2026-02-20
- Effective: 2026-02-20
- Checked: 2026-10-23

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

- 2026-02-20: Published; Takes effect
- 2026-10-23: We checked the official text

The effective date here is the decision date, not a customs collection cutoff or refund-processing date.

## 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

Which duties remain: a current budget for a $20 cotton T-shirt (illustrative, using the tariff calculator)

| 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 |

Assumes Chinese knit cotton T-shirts, HTS 6109.10.00, without an exclusion, using site rates checked on October 23, 2026. The new 12.5% is a separate July measure, not a tax created by the ruling. This is duty only, not the February 20 amount or a refund calculation; the tool lists fees separately.

[Recalculate in the US import duty calculator for apparel](https://storecalc.com/en/tariff/?item=t-shirt&fiber=cotton&o=china&v=20&q=1&mode=air)

## 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

Quoted from the official text.

> So too here; the terms of IEEPA do not authorize tariffs.

— [Learning Resources, Inc., et al. v. Trump, President of the United States, et al., Nos. 24–1287 and 25–250](https://www.supremecourt.gov/opinions/25pdf/24-1287_4gcj.pdf)

> IEEPA contains no reference to tariffs or duties.

— [Learning Resources, Inc., et al. v. Trump, President of the United States, et al., Nos. 24–1287 and 25–250](https://www.supremecourt.gov/opinions/25pdf/24-1287_4gcj.pdf)

## Sources

- [Learning Resources, Inc., et al. v. Trump, President of the United States, et al., Nos. 24–1287 and 25–250](https://www.supremecourt.gov/opinions/25pdf/24-1287_4gcj.pdf)

We checked the official text on 2026-10-23. Rules can change again; the latest official publication prevails.

## Related updates

- [Section 301 forced-labor tariffs take effect](https://storecalc.com/en/updates/forced-labor-301.html)
- [Duty-free de minimis suspension continues](https://storecalc.com/en/updates/de-minimis-continued.html)
- [New fiscal-year MPF limits](https://storecalc.com/en/updates/mpf-fy2027.html)