On February 20, 2026, the Supreme Court of the United States issued its decision in Learning Resources, Inc. et al. v. Trump (Docket No. 24-1287), holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs, therefore invalidating all IEEPA tariffs, including the fentanyl and migration-related tariffs on goods originating from Mexico, Canada, and China and the country-specific reciprocal tariffs. The Court held that IEEPA does not authorize the president to impose tariffs and that the statutory language simply grants the power to "regulate . . . importation." This does not include the power to tax, which is exclusively held by Congress. If Congress grants the power to impose tariffs, it must be done explicitly and with clear constraints—thus, IEEPA does not grant the president unbounded authority to unilaterally impose tariffs.
Guidance to Importers
Refunds
The decision invalidates the IEEPA tariffs, but the Court did not provide guidance on the refund process, including how, when, and to whom refunds may be issued. To the extent the government concedes refunds are available to certain importers, we expect the U.S. Court of International Trade (CIT) to work with the U.S. Treasury Department and U.S. Customs and Border Protection (CBP) to establish the appropriate refund procedures. If not, we expect further litigation regarding which importers are entitled to a refund.
Collection of Tariffs
The Court did not issue injunctive relief ordering the pause of IEEPA tariff collection. However, President Trump issued an executive order (EO) formally terminating the IEEPA tariffs and indicating that the government, as soon as practicable, shall no longer collect the IEEPA tariffs for imported goods. CBP issued guidance in Cargo Systems Messaging Service # 67834313, confirming that the agency will no longer collect IEEPA tariffs for goods entered for consumption or withdrawn from warehouse for consumption starting February 24, 2026. CBP will update the Automated Commercial Environment (ACE), and tariff codes associated with the IEEPA tariffs will be deactivated in the ACE on February 24, 2026.
Next Steps
The Court's decision is an important milestone but leaves a lot of questions unanswered. Importers and other industry stakeholders should monitor CBP and CIT developments and wait for clear direction on next steps. In the interim, importers can take proactive steps to prepare to assert their refund rights, including reviewing affected entries to track liquidation and deadlines for Post Summary Corrections.
Introduction of New Tariffs
The president issued a proclamation imposing a global tariff of 10% (possibly increasing to 15%) under Section 122 of the Trade Act of 1974. This new tariff will take effect on February 24, 2026, through July 24, 2026, and apply to all articles imported into the United States. Certain products are excluded from the Section 122 tariff, including, without limitation, pharmaceutical products and ingredients thereof, articles currently subject or later subject to Section 232 tariffs, certain critical minerals, electronics and agricultural goods, and more. We also anticipate that the administration will implement new tariffs under Sections 232 and 301. However, these actions require a longer administrative process and, as such, cannot take effect immediately.
Suspension of De Minimis
The president also issued an EO announcing the continued suspension of the de minimis treatment for shipments from all countries, including shipments sent through the international postal network. These shipments will be subject to the 10% temporary import duty (unless excluded per Annexes I and II of the proclamation).
Venable's International Trade and Logistics Group has deep practical experience in customs matters, trade compliance, tariffs, and related issues and is carefully monitoring developments. If you have any questions on next steps or how to protect your tariff refund rights, please reach out to the authors for guidance.