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Today the U.S. Supreme Court ruled, in a 6-3 decision, that the Trump administration's use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose tariffs is unlawful. This loss of what was a consolidated appeal by the Trump administration of two lower courts decisions will invalidate the executive orders establishing the "fentanyl" tariffs against Canada and Mexico as well as the "Liberation Day" reciprocal tariffs and other IEEPA-based tariffs.
In today's decision, the U.S. Supreme Court upheld the previous decisions of the Court of Appeals for the Federal Circuit and the U.S. Court of International Trade. Specifically, the Court held that President Trump had exceeded his authority under IEEPA by establishing tariffs through executive orders. In the Court's reasoning, Chief Justice Roberts noted in respect of the IEEPA that "Had Congress intended to convey the distinct and extraordinary power to impose tariffs, it would have done so expressly, as it consistently has in other tariff statutes."
Note that tariffs imposed under other legal authorities such as Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962 remain (covers automobiles, auto parts, steel and aluminum).
This decision may open a path for Canadian companies that have exported goods to the U.S. to recover duties paid under the IEPPA tariffs. The process for such refunds has yet to be determined.
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