SCOTUS Holds IEEPA Tariffs Unlawful

What You Need to Know

Key takeaway#1

IEEPA Does Not Authorize Presidential Tariffs. In a 6-3 decision, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs during peacetime national emergencies.

Key takeaway#2

CIT Has Exclusive Jurisdiction. Two cases were consolidated for argument – the first was originally brought in the Court of International Trade (CIT) (V.O.S. Selections) and the second was brought in U.S. District Court in Washington, D.C. (Learning Resources). In both cases, the lower courts held the tariffs were unlawful, but each court also said it –and not the other – was the correct forum for the dispute. The Supreme Court held that these challenges to the legality of IEEPA tariffs were within theexclusive jurisdictionof the CIT. Thus, V.O.S. was affirmed, while Learning Resources was vacated for lack of jurisdiction.