Supreme Court strikes down IEEPA tariffs: What's next?

Update on the U.S. Supreme Court tariff ruling

The U.S. Supreme Court has ruled that broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. This ruling brings those duties to an end but leaves key questions unresolved. The Court did not address refunds, and the timing, eligibility, and process for any repayment of past tariffs remain uncertain and subject to further government action or litigation.

While focusing on proven resiliency strategies is critical, there are ways to preserve your right to potential refunds:

• Review current customs entries, especially those nearing key deadlines.
• For closed (liquidated) entries, file a protest within 180 days of the liquidation date.
• For open entries, continue to monitor for a liquidation date to take appropriate action.
• Consider reaching out to a trade attorney to discuss if any legal filing should be made with the Court of International Trade.
• Use tools such as U.S. Tariff Impact Analysis, ACE Import Intelligence, and U.S. Customs Analytics to make informed decisions.

Importantly, this decision does not signal a shift away from aggressive trade policy, and new U.S. tariffs were immediately instituted under other legal authority. Section 122 tariffs of 10% have been imposed on imports for 150 days, with some exceptions.

In the wake of the ruling, the European Union has signaled hesitance about ratifying its recent trade deal with the United States. Other countries may do the same. However, at this point, none of this has moved beyond the discussion phase and no prior trade agreements or related tariffs have been undone.

Supply chain leaders should avoid making sourcing decisions based on the Supreme Court ruling and instead stay focused on proven resilience strategies, including diversifying sourcing, using trade programs where available, and building flexibility to manage continued policy volatility.

White House continues de minimis treatment suspension

On February 20, 2026, the White House issued an executive order continuing the suspension of de minimis treatment for imports from all countries regardless of country of origin. The de minimis exception previously allowed low-value parcels to ship duty-free. International mail shipments will continue to follow the processes detailed in the guidance issued on September 22, 2025.

Canada and China trade agreement

Canada and China reached a trade agreement that lowers tariffs on electric vehicles (EVs) and agricultural products, marking a new phase in their bilateral relations. Key details of the agreement include:

• Tariff reductions: Canada will allow 49,000 Chinese EVs to be imported at a reduced tariff rate of 6.1%, down from a previous 100% tariff imposed in 2024. This change is expected to make EVs more affordable for Canadian consumers.
• Long-term review: The agreement includes provisions for a review in three years to assess its implementation and the benefits to Canada.

New instructions for refund replacements

U.S. Customs published instructions on how to request a replacement for a refund that was undeliverable, stale-dated, or rejected due to the shipper not being enrolled in the Automated Clearing House (ACH) refund program. The instructions cover who can request a replacement refund and how to request one, along with details on processing time and tracking. These instructions follow the implementation of the new requirement to process all refunds electronically, which went into effect February 6, 2026.

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