"The Supreme Court's decision on Friday ruled the Oval Office's use of IEEPA to introduce its sweeping global tariffs was unlawful, prompting a weekend of updates from the Oval Office as it scrambled to find a new legal footing to continue collecting its import duties. IEEPA tariffs were initially imposed on China in February 2025, and a month later, were imposed on Canada and Mexico. April's "Liberation Day" tariffs also came under the IEEPA authority."
"Optimists have suggested the refunds could act as an economic stimulus for the economy, as U.S. importers would be the entities receiving the cash influx. Indeed, consumers might even hope for lower prices if corporations pass on the influx of cash. But Treasury Secretary Scott Bessent has already suggested consumers will be waiting a while-if not forever-for the cash to trickle its way back into their pockets. Speaking at the Economic Club of Dallas in the aftermath of the ruling, the Treasury secretary said the Supreme Court had not ruled on how the funds generated under IEEPA should be handled, so that decision will be pushed back to international trade courts."
The Supreme Court found the administration's use of the International Emergency Economic Powers Act (IEEPA) to impose global tariffs unlawful. IEEPA tariffs were applied to China in February 2025 and to Canada and Mexico a month later, with April's "Liberation Day" tariffs also covered. Economists estimate roughly $175 billion in duties is now locked in refund litigation. The Treasury secretary said the Court did not decide how to handle those funds and that the matter will move to international trade courts, potentially delaying refunds for weeks, months, or years. The White House is exploring alternative legal authorities to continue collecting import duties.
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