Supreme Court Strikes Down Trump’s IEEPA Tariffs — Now What for LSPs?

What the Supreme Court decided

On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. In effect, tariffs that relied on IEEPA emergency declarations no longer have a valid statutory basis after this decision.

For logistics and customs teams, the key point is scope: this ruling is about one legal authority (IEEPA). It does not eliminate tariffs imposed under other trade statutes.

What tariffs are implicated

The decision targets IEEPA-based tariff programs, including widely described “reciprocal” emergency tariff measures and other IEEPA emergency tariffs (often discussed in connection with non-trade rationales such as “drug trafficking”).

Operationally, treat this as: the IEEPA layer is invalid, but each HS line must still be checked for other active duty overlays and for any replacement measures that apply at entry.

The immediate “now what”: a new temporary global surcharge under Section 122

On the same day as the Court’s decision, the Administration issued a proclamation invoking Section 122 of the Trade Act of 1974 to impose a temporary import surcharge:

Rate: 10% ad valorem, subject to Annex-based exclusions
Trigger: goods entered for consumption or withdrawn from bonded warehouse for consumption
Effective: 12:01 a.m. ET, February 24, 2026
Planned end: 12:01 a.m. ET, July 24, 2026, unless ended earlier or extended with Congressional involvement
Section 232 interaction: the surcharge is not applied “in addition to” Section 232 coverage (it applies only to the portion not covered by 232 where applicable)
FTZ impact: for covered goods admitted to a Foreign Trade Zone on/after the effective date, the proclamation generally requires privileged foreign status, which can change duty outcomes when goods are later entered

Important: some public reporting has discussed a possible move from 10% up to 15%. Treat any rate change as pending until you see a formal update in the proclamation/Federal Register and corresponding CBP implementation guidance.

What did not change: Section 232 and Section 301 remain

This is not a broad tariff rollback. Tariffs imposed under other statutes are not automatically affected, including:

Section 232 (Trade Expansion Act of 1962): sector-based national security tariffs
Section 301 (Trade Act of 1974): unfair trade practice tariffs (including many China-origin programs)
Other trade remedies and enforcement tools

For LSPs, this matters because landed cost can still combine multiple layers:

Base MFN/FTA duty
Section 301 (where applicable)
Section 232 (where applicable)
Section 122 temporary surcharge (where applicable)
(Minus the IEEPA layer, where it had been charged)

Refunds: a major question, not an operational certainty (yet)

The Supreme Court decision does not itself establish a refund process or timetable for duties previously collected under IEEPA-based tariffs. Refund mechanics, eligibility, and timing are likely to be shaped by agency implementation and follow-on litigation.

A safe, useful message for customer conversations:

“The authority for IEEPA-based tariffs was struck down, but refund pathways are not standardized yet.”
“Importers should consult trade counsel; we can support with entry data and documentation.”

Avoid promising refunds are “automatic.”

“Now what?” A checklist LSPs can use immediately

1) Update quoting and duty logic to separate layers

Break out base duty vs. 301 vs. 232 vs. Section 122 surcharge.
Re-check DDP and duty-paid quotes for surcharge pass-through language.

2) Anchor teams on the real trigger: entry timing

Section 122 applies based on entry for consumption / warehouse withdrawal, not sailing date.
For in-transit freight arriving around Feb 24+, align customer guidance to CBP instructions as they publish.

3) Confirm Annex-based exclusions by HS code

Avoid broad assumptions (by country or product category) unless confirmed by HTS/CBP updates.
Build a fast workflow: SKU → HS code → duty layers → customer communication.

4) FTZ users: validate “privileged foreign status” procedures

If you run FTZ flows, confirm admissions and compliance steps for covered goods admitted on/after the effective date.

5) Get data ready for potential claims without overpromising

Assemble entry summaries, line-level duty calculations, classification history, COO records, and broker filings.
Track which duty lines were tied to IEEPA versus other authorities.

One practical note from the Tradlinx lens

As tariff authority shifts and “duty stacking” becomes more complex, Tradlinx’s focus is helping logistics teams keep entry instructions, HS mappings, and landed-cost assumptions consistent across brokers, lanes, and customer quotes.

What to monitor next

CBP guidance / CSMS messages implementing Section 122 (including any reporting codes)
USITC HTS updates reflecting annex exclusions and administrative changes
Any formal action modifying the surcharge rate
Early signals of policy migration into Section 232 (sector investigations) or Section 301 (new investigations/adjustments)