Supreme Court Strikes Down IEEPA Tariffs
IEEPA tariffs invalidated in 6–3 decision; ABA urges full, timely refunds
In a closely watched decision, the U.S. Supreme Court ruled 6–3 that tariffs imposed by the Trump administration under the 1977 International Emergency Economic Powers Act (IEEPA) exceeded presidential authority. Writing for the majority, Chief Justice John Roberts said IEEPA allows emergency action but does not confer taxing power—authority the Constitution assigns to Congress.
The decision reaffirms that only Congress may impose tariffs and underscores the constitutional limits on executive trade authority. The Court did not decide whether refunds are required or how they should be administered, leaving those issues to lower courts and the relevant federal agencies.
In dissent, Justice Brett Kavanaugh warned that the federal government could be required to refund billions of dollars to importers who paid the now-invalid tariffs, even if some of those costs were ultimately passed on to consumers.
ABA unequivocally supports full, prompt refunds for every segment of the motorcoach industry that is subject to tariffs imposed under IEEPA. Our industry should not bear the financial burden of actions the Court has determined were beyond statutory authority, and we urge the lower courts to move swiftly to ensure complete restitution.
It is important to note the ruling applies only to tariffs imposed under IEEPA. It does not affect tariffs imposed under Section 232 of the Trade Expansion Act. As a result, the current 10% tariff rate on imported motorcoaches remains in effect.
ABA’s advocacy team remains committed to protecting our OEMs and safeguarding the broader industry. We are closely monitoring the next phase of proceedings and evaluating potential refund and enforcement impacts. ABA stands ready to advocate aggressively for our members as this process moves forward.
