In a major trade ruling, the Supreme Court of the United States held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs, voiding duties enacted solely under that statute. For the premium cigar sector, the decision nullifies IEEPA-based “reciprocal” tariffs previously applied to imports from Honduras, the Dominican Republic and Nicaragua, though it does not affect federal excise taxes, state tobacco taxes or tariffs imposed under other legal authorities. Industry stakeholders are awaiting implementation guidance from U.S. Customs and Border Protection as the situation develops. Following the ruling, President Trump announced plans to implement a new 10% global tariff under Section 122 of the Trade Act of 1974 and to pursue additional trade actions under Section 301.
