February 20, 2026
Ruling Finds IEEPA Tariffs Unlawful
In a 6-3 decision today, the Supreme Court struck down President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Because the majority of the Court affirmed the Court of Appeals Federal Circuit (CAFC), the case will now return to the CAFC and then to the Court of International Trade. Next, the Court of International Trade will have to decide the appropriate remedy for the now invalidated tariffs, including whether and how refunds should be processed.
How does this impact importers?
New, Replacement Tariffs. Look for new tariffs to be implemented to replace the IEEPA tariffs. The Supreme Court decision struck down the tariffs based on IEEPA, but not the tariffs based on other statutes (e.g., Sections 232 and 301). In a post-decision press conference, President Trump announced that he will be issuing an Executive Order to impose a 10% “global tariff”.
Court Administrative Proceedings/Refund Process. The IEEPA tariff refund process is to be determined. Expect a court or Customs agency-based refund process to be established.
Current Imports. Clients should continue importing under existing procedures consistent with the Executive Orders and CSMS Messages imposing the IEEPA tariffs. This will mean continued payment of IEEPA tariffs, but those tariff payments should ultimately be subject to refund.
Refund Preparations. Per previous Trade Alerts, clients should take steps to authorize ACE Portal ACH Refunds. All importers should have ACE portal access and be familiar with running reports to assist them in monitoring their duty/taxes.
We will keep you updated. If you have questions about this or any other import needs, please reach out to us.
How does this impact importers?
New, Replacement Tariffs. Look for new tariffs to be implemented to replace the IEEPA tariffs. The Supreme Court decision struck down the tariffs based on IEEPA, but not the tariffs based on other statutes (e.g., Sections 232 and 301). In a post-decision press conference, President Trump announced that he will be issuing an Executive Order to impose a 10% “global tariff”.
Court Administrative Proceedings/Refund Process. The IEEPA tariff refund process is to be determined. Expect a court or Customs agency-based refund process to be established.
Current Imports. Clients should continue importing under existing procedures consistent with the Executive Orders and CSMS Messages imposing the IEEPA tariffs. This will mean continued payment of IEEPA tariffs, but those tariff payments should ultimately be subject to refund.
Refund Preparations. Per previous Trade Alerts, clients should take steps to authorize ACE Portal ACH Refunds. All importers should have ACE portal access and be familiar with running reports to assist them in monitoring their duty/taxes.
We will keep you updated. If you have questions about this or any other import needs, please reach out to us.
