What happened with the IEEPA tariffs?
On February 20, 2026, the US Supreme Court struck down the administration's use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on imported goods. In a 6-3 decision, the court ruled that IEEPA was never intended to grant the executive branch broad authority over trade policy, and that tariff powers rest with Congress.
This ruling immediately invalidated what had been commonly known as "reciprocal tariffs" and "fentanyl tariffs" that had been in effect since early 2025. US Customs and Border Protection (CBP) stopped collecting IEEPA-based duties at 12:00 AM EST on February 24, 2026.
Which tariffs were struck down?
Only tariffs imposed under IEEPA authority were affected. This includes the reciprocal tariffs applied to goods from dozens of countries and the additional duties on Chinese, Mexican, and Canadian goods justified under fentanyl-related emergency declarations.
Tariffs that remain in effect include Most Favored Nation (MFN) duties under existing tariff schedules, Section 232 tariffs on steel, aluminum, and semiconductors, Section 301 tariffs on Chinese goods, and the new Section 122 temporary 10% global surcharge.
How much did importers pay under IEEPA?
It is estimated that US importers paid over $133 billion in additional duties during the period IEEPA tariffs were in effect. For many businesses, these costs represented a significant burden that was either absorbed as reduced margins or passed through to consumers as higher prices.
Can importers get refunds?
This is the critical question every importer is asking. While the Supreme Court declared the tariffs unlawful, it did not specifically address the issue of refunds. However, several important developments have occurred.
Major carriers including FedEx and UPS have filed lawsuits with the Court of International Trade to preserve refund rights on behalf of their customers. Individual importers and customs brokers are also filing protective claims. CBP has not yet established a formal refund process.
If you paid IEEPA tariffs, you should consult with your customs broker immediately to determine your exposure. You need to file protective claims before any statute of limitations expires. You should keep detailed records of all IEEPA duties paid, including entry numbers, amounts, and dates. It is important to monitor CBP announcements for guidance on the refund process.
What replaced IEEPA tariffs?
The administration moved quickly after the ruling. On February 24, 2026, a 10% global surcharge under Section 122 of the Trade Act of 1974 took effect for a temporary period of 150 days. This replaced most prior IEEPA-based tariff actions.
Unlike IEEPA, Section 122 has explicit congressional authorization for temporary import surcharges during balance-of-payments emergencies, though legal scholars continue to debate whether the current economic conditions qualify.
What importers should do now
First, audit your 2025 and 2026 import entries to calculate total IEEPA duty exposure. Second, work with your customs broker to file protective refund claims. Third, recalculate your landed costs under the new Section 122 framework. Fourth, review your pricing strategy now that overall duty rates may be lower. Fifth, stay informed as the regulatory landscape continues to evolve rapidly.
How ASR WorldWide Express can help
Our customs clearance team is actively helping clients navigate this transition. We are reviewing import entries for IEEPA exposure, filing protective claims, and recalculating duty rates under the current tariff framework. Contact us at shipping@asrwe.com or call +1 786 373 3003 for a tariff impact assessment.
