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U.S. Supreme Court Strikes Down Trump Tariffs

Published on 2026/02/26

Maritime Legal Update – February 2026

U.S. Supreme Court Strikes Down “Trump Tariffs” – Implications for Maritime Trade and Cargo Settlements

1. Landmark Constitutional Ruling

In Learning Resources et al. v. Trump, the U.S. Supreme Court ruled 6–3 that the executive branch exceeded its constitutional authority by imposing broad global tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977.

The Court held that while IEEPA allows regulation of property during national emergencies, it does not authorize the President to impose sweeping and indefinite tariffs without explicit congressional approval.

Chief Justice John Roberts, writing for the majority, emphasized that the authority to “lay and collect taxes, duties, and imposts” is vested exclusively in Congress under Article I of the U.S. Constitution.

2. Immediate Legal and Economic Impact

The ruling effectively nullifies the “reciprocal” tariffs and emergency duties imposed on goods from China, Mexico, and Canada since 2025.

However, tariffs imposed under other statutory authorities (such as Section 301) remain intact. The administration is expected to rely on these alternative frameworks.

The decision casts doubt over more than USD 130 billion in duties already collected, triggering demands for comprehensive refunds.

3. Implications for Maritime Trade

3.1. Refund Claims and Cargo Settlements

For carriers, cargo interests, and insurers, the decision raises significant issues regarding: refund entitlement for shipments arriving on or after March 1, 2025; allocation of tariff costs embedded in freight and cargo settlements; the proper claimant in refund proceedings.

3.2. Assignment of Rights in Settlement Agreements

We previously recommended that settlement agreements involving cargo affected by the tariffs include an:

“assignment of rights” provision transferring the right to seek tariff refunds to the carrier.

This recommendation remains highly relevant, particularly in large-value cargo settlements.

4. Separation of Powers and Trade Stability

The ruling reaffirms the constitutional separation of powers and limits executive authority in tariff matters. It signals stricter judicial scrutiny of emergency-based trade measures.

For international trade stakeholders, the decision may contribute to greater predictability in U.S. tariff policy.

5. Strategic Considerations for Shipping Stakeholders

Potential resumption or stabilization of U.S. trade flows;

Large-scale refund claims and possible regress actions;

Review of prior settlement agreements;

Anticipation of alternative trade measures under existing statutes.

6. Conclusion

The Supreme Court’s decision marks a significant shift in U.S. trade law and carries substantial implications for maritime operators and cargo stakeholders.

Given the potential scale of refund claims and contractual ripple effects, stakeholders should reassess settlement structures and rights allocation mechanisms in light of this landmark ruling.