Supreme Court IEEPA Decision & Section 122 Tariffs Update

Update: US Supreme Court IEEPA Tariff Decision 

On February 20th, 2026, the US Supreme Court upheld lower court decisions ruling that the statue under which certain tariffs were introduced by President Trump did not authorize him to impose those tariffs. The ruling applies to specific tariffs enacted since February of 2025 by the administration under the 1977 International Emergency Economic Powers Act (IEEPA). 

Importers should note the following: 

• The IEEPA tariffs outlined in the ruling include the IEEPA “fentanyl” tariffs on Canada, Mexico, and China, as well as the “reciprocal” tariffs applied on most countries. U.S. Customs and Border Protection (CBP) has also stated that the additional Brazil and India IEEPA tariffs will no longer be applied.

• Per CBP guidance, the IEEPA duties will stop being collected for goods entered for consumption or withdrawn from warehouse for consumption on or after February 24th, 2026.

• Other tariffs, including China Section 301 tariffs or Section 232 tariffs such as those on automobiles, lumber, furniture, steel, aluminum and copper imports, are not covered by this ruling.

• CBP has not yet offered guidance on requesting refunds for IEEPA duties already paid. The mechanism, timing, and other details concerning IEEPA duty refunds may need to be decided by a lower court ruling. The Supreme Court ruling also does not comment on potential refunds for IEEPA duties that have been paid.  

We are continuing to monitor for updates on a timeline or process for potential refunds to be issued for the IEEPA tariffs. Forthcoming CBP guidance or lower court rulings will provide greater clarity on refund eligibility and the process for requesting them.   

A link to the text of the ruling is available here: 24-1287 Learning Resources, Inc. v. Trump (02/20/2026). 

 

Preserve Your Rights to Request a Refund  

To preserve rights to request refund under standard CBP procedures, importers are strongly encouraged to have protests filed with CBP within 180 days of their entry liquidation date.  

These protests can be filed post-Supreme Court decision and may help with obtaining refund for entries, should refund guidance not be provided within the 180-day post-liquidation window.  

Importers should not rely solely on the prospect of an automatic refund of all previously paid IEEPA duties.  

‘Liquidation’ refers to CBP’s final computation or ascertainment of duties on entries for consumption or drawback. 

 

Update: Section 122 Tariffs Announced by President Trump 

Importers should note the following: 

• Following the Supreme Court decision on February 20th, President Trump announced a worldwide 10% “Section 122” tariff. 

• A Presidential Proclamation and fact sheet regarding this new tariff have been released by the White House. 

• Over the weekend, the President announced on social media that he intended to raise the new tariff from 10% to 15%. At this time, the official information we have received still indicates a 10% tariff, although this may change in the near future. 

• Many of the exemptions that existed for the IEEPA “reciprocal” tariffs have been continued for the new Section 122 tariff.  

These exemptions include: 

• • Items subject to Section 232 tariffs. 

• • Certain product exclusions.  

• • “In-transit provision” that would apply only to ocean shipments already in-transit on the final vessel prior to February 24th and entered the US before 12:01am Eastern Standard Time on February 28th.   

• Details of the exemptions from Section 122 tariff are included in Annex I and Annex II to the Presidential Proclamation. 

• The Proclamation states that the new tariff will be effective for goods imported into the United States February 24th, 2026, and is scheduled to last 150 days unless extended. 

 

Delmar Services & Support     

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

Our post-entry program can be especially valuable for importers seeking support with filing Protective Protests with CBP to safeguard refund eligibility.  

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

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