John is joined by Mark Wu, Henry L. Stimson Professor at Harvard Law School. They discuss the rapidly evolving legal and policy landscape surrounding U.S. tariffs following the Supreme Court’s decision invalidating the President’s reliance on emergency economic powers to impose broad tariffs. That ruling removed a significant set of tariffs but did not eliminate the overall tariff regime. Instead, the administration quickly pivoted to alternative statutory authorities, particularly Section 122, which permits temporary tariffs for up to 150 days, as well as longer-term mechanisms such as Section 301 and Section 232 investigations. These alternative mechanisms allow the executive branch to impose targeted tariffs based on findings related to unfair trade practices or national security concerns, with less immediate need for congressional approval.

As a result, the tariff environment has shifted from sweeping, across-the-board measures to a more fragmented and dynamic system, requiring analysis on a country-by-country and product-by-product basis. Ongoing investigations into issues such as excess capacity and forced labor are likely to produce additional tariffs that may persist longer than the temporary measures currently in place. Meanwhile, legal challenges continue, including lawsuits by states arguing that the executive branch has exceeded delegated authority and violated statutory constraints. These challenges may be overtaken by the expiration of temporary tariffs and the emergence of new ones.

One major issue involves refunds for tariffs previously collected under the invalidated emergency economic powers authority. Courts have indicated that refunds are warranted and administratively feasible, even at large scale, although timing remains uncertain due to potential appeals and implementation delays. Importers’ entitlement to refunds from the government does not depend on whether they passed tariff costs on to customers, as the focus is on the legality of the government’s action rather than downstream economic effects. Downstream purchasers who claim that invalidated tariffs were passed on to them must pursue contractual remedies rather than recovery from the government.

Podcast Link: Law-disrupted.fm
Host: John B. Quinn 
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi