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The Supreme Court just struck down the IEEPA tariffs. Here's what it means.In a 6-3 ruling issued today, the Court held that the International Emergency Economic Powers Act does not give the President the authority to impose tariffs. Chief Justice Roberts, joined by Gorsuch, Barrett, Sotomayor, Kagan, and Jackson, wrote the majority opinion. Thomas, Alito, and Kavanaugh dissented.

The core question: does the power to "regulate importation" include the power to tax it? The Court said no. IEEPA lists nine specific actions the President can take — investigate, block, regulate, direct, compel, nullify, void, prevent, prohibit — and none mention tariffs or duties. Every time Congress has actually delegated tariff authority, it's done so explicitly with clear constraints. The Court found it implausible Congress buried the power to tax inside the word "regulate."

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What's struck down:

→ The "reciprocal" tariffs (10%+ baseline on all trading partners)

→ Drug trafficking tariffs on Canada, Mexico, and China (25% and escalating rates up to 145%)

→ All IEEPA-based modifications, exemptions, and adjustments from 2025

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What still stands:

→ Section 232 tariffs on steel and aluminum (different legal authority that explicitly references duties)

→ Section 301 tariffs on China (unfair trade practices — separate statute)

→ Anti-dumping and countervailing duties under other congressional statutes

→ The effective U.S. tariff rate still sits around 9% — down from ~18% but well above the pre-2025 rate of ~2%

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What happens next:

→ ~$175 billion in IEEPA duties have been collected since Feb 2025. The Court of International Trade is positioned to order refunds.

→ The Administration has signaled it will pivot to Section 232, 301, and 338 authorities to reimpose tariffs — but those require investigations, hearings, and time.

→ Congress can explicitly authorize tariff power if it chooses.

The Court's message was clear: this decision belongs to the legislature.There is no transition period. This is effective immediately. That doesn't mean your refunds are automatic.

For customs brokers: this is hugely consequential. The operational complexity of unwinding IEEPA tariffs, processing refund claims, and preparing for replacement tariffs under new authorities is going to test every brokerage's systems and capacity. The brokers who can adapt fastest will win.