IEEPA (International Emergency Economic Powers Act)
IEEPA is a 1977 federal law granting emergency trade powers to the President — now at the center of the Supreme Court tariff challenge.
The International Emergency Economic Powers Act (IEEPA) is a federal law enacted in 1977 (50 U.S.C. §§ 1701–1707) that grants the President broad authority to regulate international commerce during a declared national emergency. In 2025, the Trump administration invoked IEEPA to impose reciprocal tariffs on imports from dozens of countries — a use of the law that is currently being challenged before the U.S. Supreme Court.
What IEEPA Authorizes
IEEPA gives the President power to:
- Block or regulate any financial transaction involving foreign interests
- Freeze foreign assets within U.S. jurisdiction
- Restrict imports and exports during a national emergency
- Impose economic sanctions on foreign nations, entities, or individuals
The law requires the President to first declare a national emergency under the National Emergencies Act before exercising IEEPA powers. Historically, IEEPA has been used primarily for sanctions programs (e.g., against Iran, North Korea, Russia) rather than for imposing tariffs.
IEEPA and Tariffs
In early 2025, the administration used IEEPA to impose "reciprocal tariffs" on imports from 57 countries, arguing that trade deficits constituted a national emergency. These tariffs are separate from and stack on top of:
| Tariff Type | Legal Authority | Status |
|---|---|---|
| IEEPA reciprocal tariffs | 50 U.S.C. § 1702 | Under SCOTUS review |
| Section 301 tariffs (China) | Trade Act of 1974 | Not affected by case |
| Section 232 tariffs (steel/aluminum) | Trade Expansion Act of 1962 | Not affected by case |
| MFN base duty rates | Tariff Act of 1930 | Not affected by case |
The Supreme Court Challenge
The legality of using IEEPA to impose tariffs is being challenged in V.O.S. Selections, LLC v. Trump (consolidated with Learning Resources, Inc. v. Trump):
- May 2025: The U.S. Court of International Trade (CIT) ruled that IEEPA does not authorize the President to set tariffs, permanently enjoining enforcement
- August 2025: The Federal Circuit Court of Appeals affirmed the CIT ruling en banc
- September 2025: The Supreme Court granted certiorari
- November 5, 2025: Oral arguments held — justices from both ideological wings expressed skepticism about the government's position
- February 2026+: Ruling expected on any opinion day starting around February 20
The case centers on two constitutional doctrines: the major questions doctrine (Congress must speak clearly when delegating authority over issues of vast economic significance) and the non-delegation doctrine (Congress cannot give away its legislative powers).
What It Means for Importers
If the Supreme Court strikes down IEEPA tariffs, importers who paid reciprocal tariffs may be eligible for refunds through the CBP protest process. Key considerations:
- Only IEEPA/reciprocal tariffs would be affected — Section 301 and Section 232 tariffs use different legal authority
- Entries must be either unliquidated or have timely filed protests (within 180 days of liquidation)
- CBP must liquidate entries within 314 days of the date of entry
- The administration would likely attempt to reimpose tariffs under different legal authority