The Supreme Court IEEPA Decision: What Happened
On February 20, 2026, the U.S. Supreme Court issued a landmark 6-3 decision striking down the tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Chief Justice Roberts, writing for the majority, held that while IEEPA permits the president to regulate imports during national emergencies, it does not clearly authorize the imposition of duties.
This ruling invalidated the sweeping tariff regime that had been in place since the "Liberation Day" executive orders of April 2025, which had imposed a 10% global baseline duty plus country-specific reciprocal tariffs ranging from 11% to 70%.
For importers who have been paying elevated duties for nearly a year, this is a significant development — but the story is far from over.
What Tariffs Were Struck Down
The IEEPA tariffs that are now invalid included:
- 20% duties on goods from China and Hong Kong (fentanyl-related IEEPA tariffs)
- 25% duties on non-USMCA imports from Canada and Mexico
- 10% global baseline duty from the April 2025 "Liberation Day" orders
- Country-specific reciprocal tariffs ranging from 11% to 70% on dozens of countries
These tariffs generated an estimated $175 billion in collections during their time in effect.
What Replaced Them: Section 122 Tariffs
Within hours of the Supreme Court ruling, President Trump invoked Section 122 of the Trade Act of 1974 to impose a new 10% temporary global tariff on all imports, effective February 24, 2026.
Key details about the Section 122 replacement:
- Rate: 10% on all countries of origin (the president has indicated intent to raise this to 15%, the statutory maximum)
- Duration: 150 days maximum — expires July 24, 2026 unless Congress extends it
- Exclusions: Critical minerals, energy products, certain agricultural goods, USMCA-compliant goods, CAFTA-DR goods, and products already under Section 232 tariffs
- In-transit exception: Goods loaded before February 24 and entered before February 28 are exempt
Section 122 is already facing legal challenges. On March 5, 2026, twenty-four states filed suit to block these tariffs, arguing the statute requires a genuine "balance-of-payments emergency" — not simply a trade deficit.
IEEPA Tariff Refunds: What You Need to Do
The Court of International Trade (CIT) has ordered CBP to provide universal IEEPA duty refunds. However, the process is still taking shape.
Steps to Take Now
1. Access your ACE Portal. The Automated Commercial Environment is where your entry data lives. You need an active account to track your refund eligibility.
2. Review your entry history. Identify all entries where IEEPA duties were collected. These fall into three categories:
- Unliquidated entries (easiest to refund)
- Liquidated but protestable entries (file protests if you haven't already)
- Finally liquidated entries (may require litigation to recover)
3. Verify your HTS classifications. Incorrect classifications could complicate the refund process. Work with your customs broker to ensure all entries are properly classified.
4. Preserve your records. Maintain all documentation related to IEEPA duty payments, entry summaries, and any prior protests filed.
5. Work with your customs broker. CBP is developing new functionality within ACE — expected mid-April 2026 — to streamline the refund process. Your customs broker will be instrumental in navigating this.
What's Still in Effect
Not all tariffs were struck down. The following remain fully active:
- Section 232 tariffs on steel (25%), aluminum (25%), and newly added wood products and copper
- Section 301 tariffs on Chinese goods (investigations ongoing for additional sectors)
- Section 122 global tariff (10%, expiring July 2026)
- Antidumping and countervailing duties on specific products
- De minimis suspension — the duty-free threshold for low-value shipments remains suspended
Looking Ahead: USMCA Renewal and Beyond
The USMCA approaches its July 1, 2026 renewal deadline, adding another layer of trade policy uncertainty. Most stakeholders expect renewal, but renegotiation is likely.
Meanwhile, USTR opened new Section 301 investigations in March 2026 targeting excess manufacturing capacity and forced labor across 60 trading partners. Comments are due April 15, giving importers a narrow window to assess exposure.
How Native Supply Chain Can Help
Our licensed customs brokerage team is actively monitoring every development in this evolving tariff landscape. We're helping clients:
- Assess IEEPA refund eligibility across their entry history
- Reclassify products under updated tariff codes
- Navigate Section 122 exclusions to minimize current duty exposure
- Prepare for USMCA renewal with compliant documentation
- Stress-test supply chains against different tariff scenarios
The tariff environment in 2026 is the most complex in modern history. Having an experienced customs broker and freight partner isn't optional — it's essential.
Contact our customs team to discuss your specific situation, or request a quote that accounts for current tariff rates.