End of IEEPA Tariffs and Introduction of Section 122 Tariff 

On February 20th, 2026, the US Supreme Court ruled that President Trump did not have the authority to introduce tariffs under the International Emergency Economic Powers Act (IEEPA). 

 

What Importers Should Note 

IEEPA Tariffs  

• Per CBP guidance, the IEEPA duties will no longer be in effect or collected on goods entering the United States after 12:01am on February 24th. 

• • These tariffs include the 35% “fentanyl” tariff on non-CUSMA/USMCA-certified imports of Canadian origin. 

• Refunds for the tariffs paid under IEEPA are still the subject of ongoing court proceedings.  

• • The timing and mechanism for the potential refunds has not yet been fully established. Guidance from the administration and the courts will be forthcoming. 

Section 122 Tariff 

• A new 10% “Section 122” tariff was introduced for imports effective February 24th. The Presidential Proclamation is available here. 

• The Section 122 tariff does provide an exemption for CUSMA/USMCA certified imports.  

• Non-CUSMA/USMCA certified imports may be subject to the 10% Section 122 tariff, unless otherwise exempted. Additional product exemptions are listed in Annex I and Annex II of the proclamation.  

• The US administration has threatened to raise the Section 122 tariff from 10% to 15%, but this has not been formally enacted to date.  

• The Section 122 statute allows the President to introduce tariffs for 150 days without congressional action.   

This is the first time tariffs have been introduced under the Section 122 law, and it is unclear if there is a legal option for the President to renew the tariff after that point without Congressional approval. At least 24 US states have filed legal challenges against this tariff.  

 

Section 232 Tariffs Remain Unchanged  

Tariffs introduced under Section 232 authority are unchanged by the recent Supreme Court ruling. Section 232 tariffs impact both CUSMA/USMCA-certified goods and non-CUSMA/USMCA-certified goods.  

• Certain steel, aluminum, copper, and derivative products: Subject to a 50% tariff under section 232. For derivative products subject to these tariffs with components of other materials, generally only the value of the steel, aluminum, or copper components is subject to the 50% tariff.  

• Passenger vehicles, trucks, and auto parts: Subject to a 25% tariff under Section 232. CUSMA/USMCA certified auto parts are not subject to this section 232 tariff at this time. A duty offset program exists for US Automobile manufacturers. It is administered by the Department of Commerce; more information on the off-set program is available here. 

• Medium/heavy duty vehicles and their parts: Subject to a 25% tariff under section 232. CUSMA/USMCA certified parts are not subject to this section 232 tariff at this time. 

• Buses and certain trucks: Subject to a 10% tariff under section 232. 

• Upholstered furniture, kitchen cabinets and vanities: Subject to a 25% section 232 tariff. 

• Softwood timber and lumber: Subject to a 10% section 232 tariff. 

• Products subject to section 232 tariffs are not currently subject to the 10% section 122 tariff. If only a portion of the product is subject to the section 232 tariff as in the steel, aluminum, and copper tariffs, then the other portion of the product will be subject to the section 122 tariff, unless otherwise exempted. 

 
Delmar Services & Support     

Delmar's  US Customs Advisory and Consulting experts remain available to assist with any questions regarding the topic at hand.   

Delmar will continue to provide pertinent updates as they become available.      

For additional information and assistance, please contact your local Delmar Representative.