In a sweeping decision with major implications for U.S. trade, the Supreme Court has invalidated a broad category of Trump-era tariffs — and companies that paid them may be entitled to refunds. Here's what you need to know.
The Big News: IEEPA Tariffs Are Gone
On February 20, 2026, the U.S. Supreme Court ruled that President Trump lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs, striking down all tariffs created under that statute. This includes the so-called "Reciprocal Tariffs" and the Trafficking and Immigration Tariffs.
But Not All Tariffs Are Gone
The ruling is narrowly limited to IEEPA-based tariffs. Several other Trump-era trade measures remain fully in force:
Section 122 Tariffs: A 10% temporary global tariff implemented on February 24, 2026 remains in effect.
Section 301 Tariffs on certain goods from China and other countries are unaffected.
Section 232 Tariffs on steel, aluminum, semiconductors, auto parts, and related products remain active.
All other non-IEEPA measures stay in place unless separately reversed.
Companies should not assume that the Supreme Court's decision provides blanket tariff relief — careful review of which tariffs apply to specific import entries is essential.
Refunds: The Door Is Open, But the Path Is Uncertain
The Supreme Court's decision did not directly address refund eligibility, leaving that question open. However, on March 5, 2026, the Court of International Trade ordered U.S. Customs and Border Protection (CBP) to liquidate or reliquidate entries without IEEPA duties and confirmed that importers are entitled to relief. Refunds are possible, but companies should be prepared for what may be a lengthy process.
What Companies Should Do Right Now
For foreign companies that paid IEEPA-based tariffs, we recommend taking the following steps promptly:
Review import entries subject to IEEPA-based tariffs to identify potential refund opportunities.
File protests or corrections with U.S. Customs and Border Protection (CBP).
If corrections are no longer available through standard channels, pursue an administrative protest with CBP or, where appropriate, file a claim with the Court of International Trade.
Don't Overlook the Broader Picture
Beyond pursuing refunds, companies should also use this moment to evaluate the wider commercial and operational impact of tariffs that remain on the books:
Review your commercial contracts to assess how tariff-related costs are allocated between parties and whether adjustments, renegotiations, or claims may be warranted.
Monitor new and evolving tariff actions closely, including the recently implemented 10% global tariff, to anticipate cost impacts and recalibrate supply chain and pricing strategies accordingly.
For more information or to discuss your specific situation, please contact us today.
