Earlier today, the U.S. Supreme Court ruled (6–3) that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs. As a result, tariffs implemented under IEEPA, primarily country-specific reciprocal tariffs, have been declared unconstitutional and are now void.
This is a significant development for home furnishings retailers navigating a complex and often unpredictable trade environment.
What This Ruling Does and Does Not Do
What it does:
- Invalidates tariff rates imposed under IEEPA authority.
- Removes the legal basis for most country-specific reciprocal tariffs implemented under that statute.
While the power is now void, the tariffs remain in effect until official guidance is published.
What it does not do:
- It does not address how refunds will be handled for IEEPA tariffs that have already been paid.
- It does not impact Section 232 tariffs (including those on steel, aluminum, copper, upholstered furniture, kitchen cabinets, and bathroom vanities).
- It does not affect Section 301 tariffs on goods imported from China.
For many HFA members, this distinction is critical. While the IEEPA decision may provide relief on certain imports, other tariff programs that affect key home furnishings categories remain fully in place.
What Retailers Should Expect Next
We expect that President Trump and his Administration will react by imposing tariffs using other authorities, including Section 232 and Section 301, but those processes and other legal authorities are more limited than the original IEEPA intent and process.
Key Questions Ahead
Several important issues remain unresolved, including:
- How will Customs and Border Protection (CBP) implement the ruling?
- What process will be established for importers seeking refunds?
- How quickly will administrative guidance be issued?
- Will new tariff actions be proposed under alternative authorities?
HFA is actively monitoring agency communications and legal developments to provide members with clear, actionable guidance.
HFA’s Commitment
HFA remains fully engaged on behalf of home furnishings retailers as this situation unfolds. We will continue working directly with policymakers and agency officials to ensure that the industry’s perspective is clearly represented in any next steps. Our team is closely monitoring guidance from Customs and Border Protection and other federal agencies to provide members with timely updates on refund procedures, compliance considerations, and potential new tariff actions. As always, our advocacy is focused on promoting trade policies that provide stability, predictability, and fairness—protecting retailers from unnecessary financial burdens while supporting strong, competitive supply chains that benefit businesses and consumers alike.
As this situation evolves, member engagement will be essential. Your experiences and input help shape our advocacy efforts and strengthen our collective voice. HFA will provide additional insights and practical next steps as more details become available.
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