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Supreme Court Ruling on Trump-Era IEEPA Tariffs Imminent as Treasury Vows to Preserve Revenue

Treasury signals a pivot to Section 301 or Section 232 to sustain collections if the IEEPA measures are struck down.

Overview

  • The Supreme Court could issue a decision as soon as January 9 on whether tariffs imposed under the International Emergency Economic Powers Act are lawful.
  • More than 900 lawsuits seek refunds of the duties, with over 1,000 companies involved, including Japanese firms such as Toyota Tsusho and Sumitomo Chemical.
  • Provisional collections totaled about $133 billion as of December 14, and reporting estimates potential refunds could approach $200 billion if the measures are invalidated.
  • In December, the U.S. Court of International Trade denied requests to pause Customs and Border Protection’s duty finalization, leaving refund outcomes largely to judicial discretion.
  • Treasury Secretary Besent said the administration could maintain roughly the same revenue by using other trade laws, citing Section 301 and Section 232 as potential authorities.