WHAT’S THE LATEST

On February 20, the U.S. Supreme Court issued its decision in Learning Resources, Inc. v. Trump, addressing the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Court held that the President’s use of emergency authority to impose broad tariff programs exceeded statutory limits.

While the ruling shapes the legal framework for past and future emergency‑based tariff actions, there are no immediate changes to existing tariff rates, and agencies have not yet issued revised instructions.

WHAT WE KNOW

Scope of the Ruling

  • The decision applies specifically to tariff actions implemented under IEEPA.
  • The ruling does not affect tariff programs implemented under separate statutory authorities, such as Section 301 or Section 232. 

Unclear Impacts on Existing “Trade Deals”

  • The opinion acknowledges that dozens of countries—including the United Kingdom, Japan, Vietnam, and EU member states—entered negotiations with the U.S. after the tariff actions began.
  • However, the ruling does not clarify how these agreements or ongoing negotiations may affect tariff obligations or eligibility for relief.

Operational Impact

  • No immediate changes have been made to the Harmonized Tariff Schedule (HTS) or current duty rates. 
  • Federal agencies, including U.S. Customs & Border Protection and the Department of Justice, may release guidance in coming days or hours, but timelines are unknown.

High‑Tariff Environment Expected to Continue

The Supreme Court’s opinion discusses several overlapping trade policy tools, including Sections 232, 122, 201, 301, and 338. These collectively indicate that the current high tariff environment is unlikely to change in the near term, even as the IEEPA‑based actions are evaluated in the courts.

Relief, Refunds, & Role of the Court of International Trade

Challenges to the IEEPA based tariffs have been actively litigated in the U.S. Court of International Trade (CIT), and the CIT is expected to determine the availability, scope, and process for any relief or refunds related to unlawfully assessed IEEPA tariffs. We expect this issue to be within the CIT’s jurisdiction to determine relief and remedies.

Importers should maintain full documentation for any entries subject to IEEPA based duties, as refund or protest pathways—if established—will likely require strict proof of eligibility. 

SEKO'S GUIDANCE

We recommend that importers:

  • Review historical exposure to duties imposed under IEEPA.
  • Maintain sourcing flexibility pending further government guidance.
  • Preserve all documentation relevant to entries potentially eligible for refunds.
  • Closely monitor upcoming CIT developments, which will determine if, how, and when any relief processes are implemented.

SEKO will continue to provide timely updates as more information becomes available.

QUESTIONS?

For questions about this ruling or how it affects your supply chain, please contact your SEKO representative or email us at hello@sekologistics.com.