The construction industry has felt the effects of increased tariffs on both raw materials and finished goods. A recent Supreme Court ruling may ease part of the tariff burden paid by importers.
Supreme Court overturns Trump’s IEEPA tariffs
The Supreme Court recently held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose sweeping tariffs on nearly all trading partners. In Learning Resources Inc. v. Trump, the Supreme Court invoked the major questions doctrine—a legal principle holding[JD1] that Congress does not hand over major policy-making power to the executive branch through vague or ambiguous language.
The IEEPA gives the President broad authority over international trade during national emergencies, but its text does not contain language allowing the President to levy tariffs. Accordingly, tariffs imposed pursuant to the IEEPA were unlawful and were terminated on February 24, 2026.
What this ruling means for refunds and other tariffs
Around $170 billion in tariffs were collected under the IEEPA. Notably, the Supreme Court did not reach a decision on how to handle refunds of already paid IEEPA tariffs. The Supreme Court did say that lower courts will have discretion on how to handle refunds.
Currently, many importers—including FedEx—are suing to recoup the already paid tariffs. Though the issue is still being litigated, on March 4, 2026, the Court of International Trade ordered that tariffs collected under the IEEPA be refunded. Importantly, the order to issue refunds applies to all importers and not just those involved in the lawsuit. This order is likely to be appealed.
Tariffs not based on IEEPA are unaffected and remain in place, including those on steel and aluminum pursuant to Section 232 and a temporary 10% tariff on all imports from all countries, subject to certain exceptions pursuant to Section 122. These tariffs also face legal challenges.
The takeaway
Moving forward, the refund process for IEEPA tariffs is likely going to be complicated and slow, but worthy of close attention as it will have significant financial impact on all industry sectors, including construction.
Co-author Matt Kaplan is a JD candidate at Boston University School of Law and a former Summer Intern at Bernstein Shur. Co-author Conor Shankman is a Shareholder in Bernstein Shur’s Construction Law practice group, where he represents owners, developers, contractors, and design professionals on contracts, risk management, claims, and litigation. The Construction Law group guides developers, contractors, and suppliers through every project phase, combining deep industry knowledge with transactional and litigation expertise across real estate, land use, labor, and municipal law.