GDLSK | IEEPA Litigation Update

On November 5, 2025, the U.S. Supreme Court heard oral argument in Learning Resources, Inc. v. Trump (24-1287), and Trump, President of U.S. v. V.O.S. Selections, Inc. (25-250), cases brought by five importers and by several states challenging the Administration’s reliance on the International Emergency Economic Powers Act (IEEPA) to impose broad tariff measures.  The oral argument lasted nearly three hours with the justices posing pointed questions to both sides.  Three justices were clearly skeptical that IEEPA confers upon the President the power to impose tariffs.  Three other justices expressed discomfort with the government’s position that IEEPA gives the President nearly unlimited power to impose such tariffs, being that the Constitution limits that power to Congress.  A split decision appears likely but it is anyone’s guess as to how the Court will rule.  We do expect a decision within the next couple of months because the Court has put this case on a fast track.

Importantly, for importers who have been paying IEEPA tariffs, it remains an open question as to whether the Court will order refunds in the event that it invalidates the IEEPA tariffs.  Also unclear is what process would be required to obtain refunds.  For now, importers should monitor the liquidation status of their entries and track the IEEPA duties paid.

We are monitoring this case closely.  Please contact Joseph M. Spraragen or any of our attorneys with any questions you may have.

Compliments of Grunfeld Desiderio Lebowitz Silverman & Klestadt LLP – a member of the EACCNY