In a historic 6-3 decision issued on February 20, 2026, the United States Supreme Court ruled in Learning Resources, Inc. v. Trump that the executive branch lacks the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). This landmark opinion restores the constitutional balance of power and opens a critical window for American companies to recover billions of dollars in unlawfully collected duties. Klaproth Law is pursuing tariff refunds for businesses on a contingency basis.
The Ruling: Protecting the Power of the Purse
The Supreme Court rejected the administration’s argument that the power to “regulate… importation” granted by IEEPA includes the power to tax. Chief Justice Roberts, writing for the majority, emphasized that the power to “lay and collect Taxes, Duties, Imposts and Excises” is vested exclusively in Congress under Article I of the Constitution.
The Court applied the “Major Questions Doctrine,” finding that the administration’s attempt to use IEEPA to unilaterally control the national economy through sweeping tariffs—including the reciprocal tariffs and drug trafficking tariffs—represented a “transformative expansion” of presidential authority without clear congressional authorization.
Are You Owed a Refund?
This decision impacts thousands of American businesses that paid duties on imports from major trading partners—including Canada, Mexico, and China—between early 2025 and February 2026.
- Total Duties Owed: While the exact figure is still being calculated, Justice Kavanaugh noted in his dissent that the United States may be required to refund billions of dollars.
- The Remedial Process: The Court affirmed the judgment in favor of importers, but the government has not yet established an automatic refund mechanism. As the dissent warned, the refund process is expected to be a complex and highly litigated “mess”.
- Time-Sensitive Claims: To protect your right to a refund, your company must identify IEEPA-related customs entries and take formal legal steps before claims are barred by administrative deadlines or the “liquidation” of entries.
The Supreme Court has remanded the issue to the U.S. Court of International Trade (CIT). Because the government is expected to contest the scope and timing of these payments, importers must take proactive steps to secure their rights:
- Identify IEEPA Entries: Review all customs entries from February 2025 through February 2026 to identify duties paid specifically under IEEPA authorities.
- File Protective Actions: Importers may need to file formal protests or initiate litigation in the CIT to prevent their claims from being barred.
- Prepare for Litigation: The administration has indicated it will fight blanket refund requests, meaning recovery may require a dedicated legal challenge.
Contingency-Based Legal Representation
At Klaproth Law, we are dedicated to helping American businesses recover capital lost to these unlawful duties. We understand that these tariffs have already placed a significant financial strain on your operations.
To ensure that justice is accessible to all impacted importers, Klaproth Law is handling IEEPA tariff refund cases on a contingency fee basis.
- No Upfront Costs: You pay nothing out of pocket. Our firm only receives a fee if we successfully recover a refund for you.
- Expert Litigation: We have extensive experience in complex litigation.
- Results-Driven Approach: We focus on getting your money back, allowing you to reinvest in your business and workforce.
The Supreme Court has spoken: these tariffs were unlawful. Now is the time to claim what belongs to your company.
Contact Klaproth Law today for a free, confidential consultation to evaluate your potential claim.
