NAMM Welcomes Supreme Court’s Ruling Invalidating IEEPA Tariff Authority, New Tariffs Announced

On Feb. 20, the U.S. Supreme Court issued a landmark 6-3 decision in Learning Resources, Inc. v. Trump, ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. The Court held that the power to “regulate importation” under IEEPA does not — and never did — include the power to impose tariffs, which are a distinct form of taxation explicitly reserved to Congress under Article I of the Constitution.

“Today’s decision provides long-awaited relief and clarity for music products manufacturers, retailers and distributors who have struggled with unpredictable costs from these tariffs during the past year,” said John Mlynczak, president and CEO of NAMM. “Using IEEPA to sporadically regulate tariffs has placed an enormous and unjustified burden on our industry. We welcome the Court’s decision restoring the constitutional balance on trade authority.”

The ruling invalidates both sets of IEEPA-based tariffs challenged in the case: the reciprocal tariffs of at least 10% imposed on goods from all U.S. trading partners, and drug trafficking tariffs on Chinese, Canadian and Mexican imports. The ruling doesn’t affect Section 301, Section 232 or potential new Section 122 tariffs. NAMM will continue to monitor all tariff activity and update NAMM members.

On the question of refunds, the Court’s ruling is silent on whether — and how — duties already paid will be returned. During the oral argument on the case late last year, Justice Barrett pointedly stated that the refund process is likely to be a “mess.” Nearly 2,000 protective refund cases already filed in anticipation of this ruling are pending at the U.S. Court of International Trade (CIT), and that process could determine members’ ability to recover duties paid. NAMM strongly encourages members to consult with customs counsel now to understand their position and preserve any claims. There may be other avenues to seek refunds, but those details are unclear at this time.

Shortly after the Court’s decision, President Trump announced he would immediately impose a 10% global tariff, and then increase it to a 15% global tariff under Section 122 of the Trade Act of 1974 to address trade deficits. Treasury Secretary Scott Bessent stated the administration would also expand use of Section 232 (national security) and Section 301 (unfair trade practices) authorities.

These authorities come with constraints the administration didn’t face under IEEPA. For example, Section 122 tariffs are capped at 15% for 150 days unless Congress approves an extension. Section 301 tariffs require a formal investigation by the U.S. Trade Representative. Section 232 actions require a Commerce Department national security determination and are product-specific — the same process that governs existing tariffs on steel, aluminum and musical instrument components like lumber and copper.

On the question of refunds for IEEPA tariffs already paid, Trump suggested the administration doesn’t plan to proactively return duties collected, noting that the Supreme Court’s ruling did not order refunds. Additionally, Trump announced by Executive Order that de minimis remains suspended.

Already experts are anticipating more uncertainty unraveling from the latest tariff news. Patrick Penfield, professor of supply chain practice at Syracuse University, said he believes businesses should begin reviewing what international purchases they’ve made since April 1 of last year to figure out how much is owed to them.

“The Supreme Court ruling that invalidated President Trump’s tariffs will cause chaos within the supply chain,” Patrick surmized. “Consumers can expect delays for incoming products from other countries, especially with border agents trying to determine what tariffs to charge and what products should not be charged. This review may cause backups at ports and border crossings for the next few weeks. Companies should also start to review what international purchases they have made from April 1 to Feb. 20, 2026, and then determine how much is owed to them by the additional tariffs enacted by President Trump. U.S. companies will look to receive over a $175 billion in tariff refunds. The U.S. government still needs to set up a process to issue these refunds, so companies will see delays in getting this money back. Organizations should also revisit their supply chains and see if it makes sense to switch back to old suppliers before the tariffs were enacted, it could be a potential cost savings.”

NAMM is continuing to monitor executive and regulatory actions that impacts its members as they develop. Music Inc. will continue to update this story as it evolves.