We would like to inform you that today, February 20, 2026, the US Supreme Court issued a relevant decision in the case of Learning Resources, Inc. v. Trump, related to the imposition of tariffs by the US Executive Branch.
I- Summary of the ruling
The U.S. Supreme Court ruled that the U.S. Executive Branch does not have the legal authority to impose tariffs using the International Emergency Economic Powers Act (IEEPA). In particular, it determined that the authority granted by that law to “regulate imports” is not sufficient to authorize the imposition of tariffs.
The Court also reaffirmed that the power to impose tariffs rests exclusively with the U.S. Congress, and that a declaration of a national emergency does not replace express authorization from Congress to establish them.
II- Use of CAFTA-DR for exports
A statement from the Costa Rican Ministry of Foreign Trade has emphasized that Costa Rican exports to the United States continue to be governed by the provisions of the Free Trade Agreement between Central America, the Dominican Republic, and the United States (CAFTA-DR), in accordance with the rules and benefits currently in force.
III. Possible implications
Among the main implications of this decision are the following:
- Inapplicability of reciprocal tariffs imposed under the IEEPA, which, in the case of Costa Rica, corresponded to 15%.
- Possible responses from the U.S. Congress or Executive Branch, through the use of legal mechanisms other than the IEEPA, to maintain or reintroduce tariffs.
- Greater legal certainty for exporting companies, as the use of emergency powers to impose tariffs unilaterally is limited.
- Possibility of requesting a refund of taxes paid, subject to the procedures and requirements established by the competent authorities.
If you are interested in information related to the content of this bulletin, please consult with the Firm’s specialists in the Free Trade Zone, Customs, and Foreign Trade area at: jechacon@consortiumlegal.com.