The U.S. Supreme Court ruled, 6 to 3, that the International Emergency Economic Powers Act (IEEPA) does not give the President the power to impose tariffs. The decision, issued on February 20, 2026, in Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc., invalidated the global tariffs that had been based on that law.
Writing for the majority, Chief Justice John Roberts concluded that the authority to “regulate” imports does not include the power to tax them, which the Constitution reserves to Congress. Tariffs based on other statutes, such as Sections 232 and 301 and antidumping and countervailing duties, were not affected.
On the same day, the administration announced a 10% global import surcharge under Section 122 of the Trade Act of 1974. On May 7, 2026, a divided panel of the U.S. Court of International Trade held that the surcharge was also invalid, because the proclamation did not identify the kind of balance-of-payments deficit the law requires. Relief was limited to the plaintiffs in the case, and the government appealed.
The Supreme Court did not decide how refunds of the tariffs already paid would work. For importers, including Brazilian companies that export to the United States through U.S. buyers or subsidiaries, the key point is to review entries, deadlines and available administrative routes, such as post-summary corrections and protests, before they expire.
Learning Resources, Inc. v. Trump, No. 24-1287, and Trump v. V.O.S. Selections, Inc., No. 25-250 (U.S. Supreme Court, Feb. 20, 2026); State of Oregon v. United States and Burlap and Barrel, Inc. v. United States, Slip Op. 26-47 (U.S. Court of International Trade, May 7, 2026). Sources: Holland & Knight and Ward and Smith.