IEEPA Does Not Authorize the Imposition of Presidential Tariffs

The U.S. Supreme Court Redraws the Boundaries of Delegation to the Executive Branch and Opens the Door to Potential Refunds

In its decision of 20 February 2026, the United States Supreme Court ruled for the first time on the scope of the International Emergency Economic Powers Act (“IEEPA”) as a source of presidential authority to impose customs duties.

The Court, by a broad majority, held that the phrase “regulate … importation” contained in §1702(a)(1)(B) of the IEEPA does not allow the President to introduce tariffs on imports, thereby rendering tariffs imposed pursuant to the IEEPA (including the so‑called reciprocal tariffs) unlawful. Among the most immediate and significant practical consequences, the ruling opens the door to potential reimbursement of billions of dollars to importers who have already paid IEEPA tariffs.

Following the decision, President Trump officially revoked the IEEPA tariffs but, starting on 24 February 2026, announced the application of a new 10% tariff measure pursuant to Section 122 of the Trade Act of 1974.

Please read the alert written by our professionals, Gaetano Salvioli, Nicolò Cusimano and Lorenzo Di Rubbo, at the following link.