Overview
- During oral arguments, multiple justices, including Chief Justice John Roberts and Neil Gorsuch, questioned whether the International Emergency Economic Powers Act authorizes broad import tariffs, with a ruling expected by late June 2026.
- Analysts cited in coverage estimate that invalidating IEEPA-based tariffs could expose the Treasury to refund claims potentially reaching up to $1 trillion.
- Even if the Court limits IEEPA use, legal experts note the administration can still employ other statutes such as Sections 301, 232 and 122, and possibly Section 338 of the 1930 tariff law, to levy targeted or sweeping import measures.
- Mexico is prioritizing the removal or discounting of U.S. duties on heavy trucks and parts in the 2026 USMCA review, and its lower house moved to delay proposed tariffs on non-treaty Asian imports until 2027.
- Major automakers urged keeping the USMCA framework during USTR consultations, while more than 90 Democratic lawmakers pressed for a deeper renegotiation focused on labor, environmental and procurement provisions.