This legal update summarizes the potential implications for higher education if the Supreme Court narrows or invalidates the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs.

The Supreme Court has been asked to determine whether and to what extent the IEEPA authorizes the Executive Branch to impose tariffs and related trade restrictions in a national emergency context. A ruling curtailing the Executive Branch’s tariff authority under IEEPA could invalidate or limit certain import duties previously imposed and justified on emergency grounds, with downstream impacts for customers, including colleges and universities.

Limiting IEEPA-based tariffs could lower costs for imported research equipment, lab supplies, and technology inputs, affecting sponsored research budgets and procurement planning.  Reducing or removing previously-imposed IEEPA-based tariffs could also mean that universities that imported products or equipment (directly or through third parties) may be eligible for refunds, even if they didn’t pay the tariffs directly.

What Could Change for Higher Education

• Research Procurement and Capital Projects: Tariff reductions or removals could lower import costs for specialized instruments and components, prompting repricing and delivery reprioritization by vendors. Universities may also be eligible for refunds for tariffs they paid directly or indirectly through a complex claims process to be announced and managed by the federal government.
• Sponsored Research Budgets: Award budgets premised on prior tariff levels may require reallocation. Price decreases could free funds for other project needs, while new or rebalanced tariffs could create deficits if sponsors do not allow rebudgeting.
• International Programs and Collaborations: Institutions importing educational materials or technology for joint programs may face updated classification, licensing, or country-of-origin diligence as trade authorities adjust to a post-decision framework.

Next Steps for Higher Education

Institutions of higher education should be actively modeling procurement and budget scenarios tied to possible outcomes of the Supreme Court’s decision, including possible tariff changes, reductions, and removals.

Institutions should be regularly communicating and coordinating with their principal investigators and research administrators to identify awards most sensitive to tariff-driven pricing changes.

Finance and research administrators should map their recent imports, including the category of import, country of origin, and vendor for each import to determine in advance any eligibility for tariff refunds.  Purchases that could become eligible for tariff refunds include imported lab equipment, IT hardware, facilities components, and educational materials.

Finance and research administrators, as well as general counsel, should track the Supreme Court’s IEEPA decision and any follow-up measures closely. If IEEPA-based tariffs are limited, consumers, including colleges and universities, may be eligible for court-ordered refunds through the process set up by the federal government.

How Hunton’s Higher Education Team Can Help

If your institution has questions about potential IEEPA-related tariff changes or seeks assistance with evaluating tariffs your institution has paid and managing the refund claims process (once announced), please contact your Hunton Higher Education attorney.