Chief Justice John Roberts, writing for the majority, rejected the government’s reliance on statutory language referencing regulation of importation, stating that such wording could not support the sweeping tariff authority claimed by the executive branch.
Within hours of the decision, the president issued a new executive order invoking Section 122 of the Trade Act of 1974 to impose a temporary across-the-board tariff. That provision allows the president to set tariffs of up to 15% for a limited duration unless Congress authorizes an extension. The new order initially set the duty at 10%, later raising it to the statutory maximum of 15%.
Customs authorities subsequently announced they would cease collecting the invalidated emergency tariffs.
The refund litigation now before the Court of International Trade could determine how quickly and fully companies recover funds paid under the prior tariff program, potentially involving hundreds of millions of dollars across affected industries.
