What the SCOTUS Tariff Decision Means for Your Firm

Today, the U.S. Supreme Court has issued a landmark 6-3 decision that upholds lower court decisions that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to unilaterally impose tariffs. In doing so, the decision reinforces the Major Questions Doctrine, requiring explicit Congressional approval for economically significant actions. The case now goes back to the U.S. Court of International Trade to implement, which is likely to involve proceedings on the process for granting refunds.

The tariffs imposed by the Administration through executive order using IEEPA authority have generated over $133 billion in duties that have been collected as of the end of 2025, and the uncertainty going forward is whether and how those duties will be refunded in response to the Court’s decision. The decision does not impact existing trade agreements, including the United States-Mexico-Canada Agreement (USMCA), although it may impact the negotiations over the joint review of the USMCA.

The President in remarks this afternoon said that he will sign an Executive Order (EO) imposing a 10% global tariff under Section 122 of the Trade Act of 1974. The authority in that section is of limited duration and could also face legal action. Details on how the 10% will be applied are to be determined once the text of the EO is released.

ACEC will develop and offer virtual education sessions to discuss the implications of this decision further – information to follow. 

In addition, firms that do work abroad should join ACEC’s International Committee, which focuses on assisting member companies and developing and carrying out ACEC’s advocacy agenda in international markets. For more information, please contact the ACEC advocacy team.