SCOTUS Tariff Decision: Implications for Retail and E-Commerce

The Supreme Court has concluded that the International Emergency Economic Powers Act (IEEPA) does not authorize President Trump to impose tariffs.  For a detailed analysis of the decision, please see our Trade Group’s full alert.

Below is what this means for the retail sector:

• Refunds. Determine whether you are eligible to apply for refunds of tariffs.  We anticipate the Administration will resist paying refunds, and the process may take some time.  But, retailers with significant tariff exposure should evaluate potential claims now. Nothing ventured, nothing gained.
• Some Certainty. The decision has curtailed President Trump’s authority to impose tariffs. However, there are other statutes we expect he will continue to invoke (and already has in the few days since the decision). His authority under those statutes is more constrained and might allow for some predictability for retailers’ planning, sourcing, pricing, and inventory strategies.
• But Maybe Nothing Else. President Trump has vowed to continue imposing tariffs.  He announced a 15% global tariff on all imports under section 122, effective Monday, February 23, 2026, reaffirming all existing section 232 (product) and section 301 (unfair trade practices) tariffs, and announced the Administration will launch new tariff investigations.  

Certainly Uncertainty. How the Administration will justify ongoing tariffs — and how aggressively it will deploy them — is likely to trigger legal challenges.  For example, The Trade Expansion Act of 1962, Section 232, allows tariffs to be imposed, but there must be a threat or impairment of national security.  The Trade Act of 1974, Section 122, authorizes tariffs for a 150-days when there are “large and serious” balance-of-payments deficits.  Congress ultimately has the authority to curtain the President’s ability to impose tariffs.  However, meaningful legislative action appears unlikely in the near term, at least not before the midterm elections.