On Friday, the U.S. Supreme Court overturned the tariffs that the Trump Administration imposed under the International Emergency Economic Powers Act. Here is what you need to know:
- Limited Scope. Not all of the tariffs imposed by the Trump Administration are affected by this decision (i.e., the tariffs imposed under Section 232 (national security) and the Section 301 (unfair trade practices).
- Goods in Transit. The U.S. Administration has not yet announced the suspension of the collection of the IEEPA duties. Consequently, companies might consider delaying bringing products through customs until the suspension of the IEEPA tariffs has been announced.
- The decision of the U.S. Supreme Court does not indicate what remedies the U.S. Administration needs to take.
The U.S. Administration has various options to consider. It is estimated that the U.S. has collected more than $135 billion under the IEEPA tariffs, and an immediate refund of that amount would not be viable from a financial or administrative standpoint.
