The US Supreme Court has delivered a landmark decision for international trade. In the ruling Learning Resources, Inc. v. Trump of 20 February 2026, it held that the IEEPA (International Emergency Economic Powers Act) does not allow the President to impose customs duties in this manner.

Why is this decision so important?

The Court recalls a fundamental principle of US constitutional law: the power to set customs duties belongs to Congress, unless there is an explicit and clear delegation.

In practice, this decision significantly restricts the use of IEEPA as a tool for swiftly and massively imposing customs duties.

What this means in practice for businesses

For businesses, the message is clear:
a customs duty based on an unsuitable legal basis can now be challenged, or even overturned.

Another major issue: the question of refunds.
According to Reuters, more than $175 billion in tariff revenue could be subject to refund claims. This opens up a considerable undertaking for importers and their advisers (customs, taxation, litigation).

Beware: the United States has other tools at its disposal

This decision does not, however, mean the disappearance of customs duties in the United States.

The White House has already invoked Section 122 of the Trade Act of 1974 to introduce a temporary import surcharge.

The Peterson Institute also points out that, while the decision is legally significant, tariff uncertainty remains high: the executive branch retains other legal bases for action.

Key points for businesses to remember

  • IEEPA is now tightly constrained as a legal basis for imposing customs duties.
  • The tariff risk remains very real through other mechanisms (Section 122 and other trade regimes).
  • Customs compliance is now more strategic than ever: tariff classification, documentation, contract drafting, duty pass-through clauses, and regulatory monitoring must be carefully reviewed.

For more information on the subject, do not hesitate to contact our experts!

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