Understanding the Supreme Court’s IEEPA Decision
On February 20, 2026, the U.S. Supreme Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The decision invalidated the entire IEEPA tariff regime — including the “reciprocal” tariffs, drug-trafficking tariffs, and related measures — and opened a refund pathway for importers who paid those duties.
Key Takeaways:
- IEEPA tariffs from April 2025 through February 20, 2026 are recoverable
- Refunds are NOT automatic — you must take procedural action
- The 180-day CBP protest deadline runs from each entry’s liquidation date
- On March 4, 2026, the CIT ruled that ALL importers are entitled to refunds — not just parties who sued
The Supreme Court Ruling at a Glance
Case: Learning Resources, Inc. v. Trump, 2026 WL 477534 (U.S. Feb. 20, 2026)
Docket Numbers: No. 24-1287 (Learning Resources) and No. 25-250 (V.O.S. Selections)
Holding: IEEPA does not authorize the President to impose tariffs. The Court vacated and remanded No. 24-1287, and affirmed No. 25-250.
The decision was one of the most consequential trade law rulings in decades. The Court held that IEEPA — a 1977 emergency powers statute — was never intended to give the President unilateral authority to set and change tariff rates. That power belongs to Congress under Article I, Section 8 of the Constitution.
Overnight, the legal foundation for the Administration’s entire IEEPA tariff program was swept away. This included the “Liberation Day” reciprocal tariffs, the Canada/Mexico/China drug-trafficking tariffs, and all related IEEPA-based measures imposed from April 2025 through February 20, 2026.
Timeline: IEEPA’s Rise and Fall
- February – April 2025 President Trump imposes IEEPA tariffs on Canada, Mexico, and China citing drug trafficking and migration emergencies. “Liberation Day” reciprocal tariffs follow in April 2025.
- May 28, 2025 U.S. Court of International Trade declares IEEPA tariffs unlawful and issues permanent injunctions.
- August 29, 2025 U.S. Court of Appeals for the Federal Circuit affirms the CIT ruling. Tariffs remain in effect pending Supreme Court review.
- September 9, 2025 Supreme Court agrees to hear the case. Oral arguments scheduled for November 5, 2025.
- February 20, 2026 Supreme Court rules: IEEPA does not authorize tariffs. President Trump immediately invokes Section 122 of the Trade Act of 1974 as a replacement (10–15% surcharge).
- February 24, 2026 Section 122 surcharge takes effect. 150-day clock begins (expires July 24, 2026).
- March 4, 2026 Judge Eaton of the CIT orders that all importers of record are entitled to IEEPA refunds. CBP directed to liquidate/reliquidate without IEEPA duties.
What Did the Court Decide?
Three Key Holdings
1. IEEPA does not authorize tariffs. The Court held that the phrase “regulate” commerce in IEEPA does not encompass the power to impose duties on imports. Tariff authority is a congressional power under the Constitution, and Congress did not delegate it through IEEPA.
2. The IEEPA tariff orders are invalid. All executive orders imposing tariffs under IEEPA authority — including the reciprocal tariffs, the Canada/Mexico/China tariffs, and related measures — lack legal foundation and are set aside.
3. The CIT has exclusive jurisdiction over refund claims. The Court agreed with the Federal Circuit that tariff refund disputes fall within the exclusive jurisdiction of the U.S. Court of International Trade, confirming the proper forum for recovery.
Recoverable vs. Non-Recoverable Duties
Not all tariffs paid during the IEEPA period are recoverable. The Supreme Court ruling invalidated IEEPA tariffs specifically. Other tariff programs under separate statutory authority remain in effect and are not affected by this decision.
| Tariff Program | Statutory Authority | Recoverable? | Notes |
|---|---|---|---|
| IEEPA tariffs (reciprocal, drug-trafficking, related measures) | IEEPA (50 U.S.C. § 1701 et seq.) | YES ✓ | Invalidated by Learning Resources. Full refund pathway open. |
| Interest on IEEPA overpayments | 19 U.S.C. § 1505(c) | YES ✓ | Interest accrues from date of deposit to liquidation/reliquidation. |
| Section 232 tariffs (steel, aluminum, automobiles) | Trade Expansion Act § 232 | NOT covered | Separate statutory authority. Not affected by Learning Resources. |
| Section 301 tariffs (China trade practices) | Trade Act of 1974 § 301 | NOT covered | Separate statutory authority. Subject to separate litigation. |
| Section 122 surcharge (10–15% replacement) | Trade Act of 1974 § 122 | NOT covered (currently) | New authority invoked Feb. 20, 2026. Potential future challenges. |
| Normal MFN/NTR duties | Tariff Act of 1930 | NOT covered | Standard tariff rates unaffected by IEEPA ruling. |
The CIT Order: All Importers Entitled to Refunds
Atmus Filtration, Inc. v. United States — March 4, 2026
Judge Richard K. Eaton of the U.S. Court of International Trade (Court No. 26-01259) issued an order with nationwide effect establishing that:
- All importers of record whose entries were subject to IEEPA duties are entitled to the benefit of the Learning Resources decision.
- CBP must liquidate all unliquidated IEEPA entries without regard to the IEEPA duties.
- Liquidated entries where liquidation is not yet final must be reliquidated without the IEEPA duties.
- Judge Eaton will be the sole judge hearing all IEEPA refund cases.
This order ensures uniform treatment for all importers and prevents the government from arguing that only plaintiffs who filed lawsuits are entitled to relief.
Recovery Pathways
The refund pathway depends on whether your entries have liquidated and whether the protest deadline has passed:
If your entries are unliquidated or suspended
Following the Eaton order, CBP is now required to liquidate these entries without the IEEPA duties. Monitor your entries in the ACE portal and verify that liquidation reflects the correct (non-IEEPA) duty rate. If CBP liquidates with IEEPA duties still included, file a protest immediately.
If your entries have liquidated (and the 180-day window is still open)
File a CBP Form 19 protest within 180 days of the liquidation notice date. The protest must be “distinct and specific” — it must identify entry numbers, the liquidation date, the amount in dispute, and provide a legal basis tying the duties to the invalidated IEEPA authority. See the CBP Form 19 Protest Guide for the complete walkthrough.
If the 180-day CBP protest window has already closed
For entries that liquidated before approximately August 23, 2025, the CBP protest deadline may have expired before the Supreme Court’s ruling. The Tucker Act provides an alternative pathway through the Court of Federal Claims with a six-year statute of limitations. See the Tucker Act & Illegal Exaction Claims guide.
If CBP denies your protest
You may file suit in the U.S. Court of International Trade within 180 days of the denial. Given Judge Eaton’s consolidation order, all IEEPA refund cases will be heard by a single judge, creating a streamlined process. See the CIT Litigation Roadmap.
Who May Be Eligible
Refunds flow to the importer of record — the party that paid the duties to CBP. Common eligibility indicators:
- You imported merchandise and paid an IEEPA-based tariff rate (a tariff line created by an IEEPA proclamation or executive order)
- You can identify entry numbers, liquidation status, and the amount deposited attributable to the IEEPA tariff
- You can document that the duty paid exceeds the lawful duty owed absent the IEEPA tariff
- Your entries were liquidated on a date that still allows a timely protest — or are not yet liquidated
Claim Package Checklist
A. Entry & Payment Documentation
- Entry list: entry numbers, dates, ports, HTS lines, amounts paid
- Entry summaries (CBP Form 7501 or ACE equivalent) and broker workpapers
- Proof of payment/deposit: ACH statements, monthly broker billings, bank confirmations
B. Liquidation Evidence & Deadline Controls
- Liquidation notices or CBP posting evidence with dates
- Deadline tracker: 180-day protest deadline calendar for each entry
C. Protest Package
- CBP Form 19 (Protest) with entry schedule attachments
- Legal memorandum citing Learning Resources v. Trump and applicable authorities
- Refund computation worksheet (principal + interest)
- Mailing instructions if refund check should go to an agent
D. CIT Litigation-Ready Set (if applicable)
- CBP protest denial and administrative record
- Draft USCIT summons/complaint package
- USCIT Forms 1 (Summons), 5 (Information Statement), 13 (Corporate Disclosure)
Frequently Asked Questions
Can I recover interest on overpaid IEEPA duties?
Yes. Under 19 U.S.C. § 1505(c), interest accrues on excess moneys deposited from the date of deposit to the date of liquidation or reliquidation. The rate is determined by the Secretary of the Treasury. Your refund computation should include both principal and interest.
Are refunds automatic after the Supreme Court ruling?
No. The ruling establishes the legal predicate for recovery, but refunds require procedural action. For unliquidated entries, the Eaton order directs CBP to liquidate without IEEPA duties. For already-liquidated entries, you must file a timely CBP protest or pursue court action.
What if I already settled with CBP — can I reopen?
It depends on the terms of the settlement and whether the settlement specifically waived IEEPA-related claims. Consult counsel to review your specific settlement agreement and determine whether the Learning Resources ruling creates grounds to revisit.
What about my suppliers’ duties?
Refunds go to the importer of record. If your supplier was the importer of record on the entry, the refund flows to them. Contractual arrangements between buyers and sellers may address pass-through of tariff refunds, but this depends on your specific agreement.
What if I miss the 180-day CBP protest deadline?
CBP protest is no longer available once the 180-day window closes. However, you may still pursue recovery through the Court of Federal Claims under the Tucker Act, which has a six-year statute of limitations. See our Tucker Act guide for details.
Do Section 232 and Section 301 tariffs get refunded too?
No. The Learning Resources decision only invalidated tariffs imposed under IEEPA authority. Section 232 tariffs (steel, aluminum, automobiles) and Section 301 tariffs (China trade practices) were imposed under separate statutory authorities and remain in effect. They are subject to separate legal challenges.
Downloadable Resources
Key Legal Authorities
Full text of all cited statutes and regulations available at govregs.com.
- 19 U.S.C. § 1505 — Payment of duties and fees; refund upon liquidation
- 19 U.S.C. § 1514 — Protest against decisions of CBP
- 19 CFR Part 174 — Protests (Form 19 filing, contents, amendment, review)
- 19 CFR § 24.36 — Refunds of excessive duties, taxes
- 28 U.S.C. § 1581 — CIT jurisdiction
- 28 U.S.C. § 1491 — Tucker Act (Court of Federal Claims)
Ready to Take Action?
The 180-day CBP protest deadline is closing on a rolling basis. Whether you need a free assessment, a complete entry audit, or legal representation, we can help you recover your refunds.