Last Friday, the U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Chief Justice John Roberts delivered the majority opinion, with Justices Thomas, Alito, and Kavanaugh dissenting.

The ruling is a significant blow to a major portion of the administration's tariff agenda, including the "reciprocal" tariffs and duties related to fentanyl enforcement imposed under IEEPA authority. According to the administration's own figures, IEEPA-based tariffs accounted for approximately $129 billion in collected revenue as of December 2025 and represented the majority of all U.S. tariff revenue generated last year. The Court was silent on whether tariffs already paid under the higher rates will need to be refunded.

Importantly, this ruling applies only to tariffs imposed under IEEPA authority. It does not affect tariffs imposed under other legal authorities, including Section 232 tariffs on steel, aluminum, automobiles, heavy-duty trucks, related parts, and other products. Those tariffs remain in effect.

In response, President Trump issued a Friday night proclamation imposing 10% tariffs effective midnight Saturday, then announced via social media on Saturday that he would raise them to 15%. These new tariffs are levied under Section 122 of the Trade Act of 1974, which grants the President balance-of-payments authority based on factors such as trade imbalances and declines in the value of the U.S. dollar. However, thirteen import categories qualify for carve-outs from these tariffs because they either are not available domestically in sufficient quantities or at reasonable prices, are already subject to existing tariffs, or are already in transit under previously established terms.

NEFI's trade counsel is currently reviewing the full decision and these additional Section 122 tariffs. We will issue detailed guidance on what this ruling does and does not mean for our industry in the coming days. For a complete analysis, NEFI's trade counsel will provide an exclusive, in-depth update for members at our upcoming Government Affairs Webinar on March 17th, covering the full scope of the decision, its impact on IEEPA tariffs, and the broader implications for tariff law going forward.

Register for the March 17th Government Affairs Webinar here.

We encourage all members to attend. In the meantime, please direct any questions to NEFI's government affairs team.