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Supreme Court Strikes Down IEEPA-Based Tariffs, Doesn’t Rule on Refunds (“Likely to Be a ‘Mess’”)

The Supreme Court struck down the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in a 6‑3 decision, covering both reciprocal trade‑deficit tariffs and fentanyl‑related duties. Over half of the tariff revenue collected in recent years stemmed from these IEEPA measures, and the Court declined to address whether the government must refund the billions already collected. The ruling removes a key negotiating lever for the administration, prompting officials to consider shifting to other tariff statutes. Markets reacted minimally, with the 10‑year Treasury yield up only two basis points and equity indices largely unchanged.