Recent developments at the U.S. Supreme Court have significant implications for tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Court held that the President does not have authority under IEEPA to impose tariffs. This decision has generated numerous questions from importers, customs brokers, and trade attorneys. U.S. Customs and Border Protection (CBP) has provided limited guidance to date. The following reflects the information currently available.
IEEPA Tariffs – Current Status
- Refund Mechanism Pending:
No formal refund process has been announced. The Supreme Court has 30 days to remand its decision to the United States Court of International Trade (CIT). The CIT will determine whether refunds will be issued and, if so, the process for doing so. The timing of this determination is unknown. Any future lawsuits seeking repayment must be filed with the CIT. - Effective Termination Date:
IEEPA tariffs ceased as of 12:01 a.m. on February 24, 2026. Shipments that arrived prior to that time remain subject to IEEPA duties based on their date of arrival. - Entries Prior to February 24, 2026:
CBP is not permitting customs brokers to retroactively remove IEEPA tariffs from shipments that arrived before February 24, 2026. If a shipment arrived and was released prior to that date, but duties have not yet been paid, IEEPA tariffs remain due. - Post Summary Corrections (PSCs):
CBP is rejecting PSCs filed to recover IEEPA tariffs. Until the CIT establishes a refund mechanism, no refunds will be processed. - Protective Protests:
Importers should consult with trade counsel before requesting filing of protective protests and other available remedies. - In-Transit (IT) Bonds:
For shipments moving under an In-Transit bond, the IT date serves as the entry date. The duty rate in effect on that date governs.
Implementation of Section 122 Tariffs
Effective 12:01 a.m. on February 24, 2026, CBP implemented the President’s Executive Order imposing tariffs under Section 122 of the Trade Act of 1974. Section 122 authorizes the President to impose temporary import surcharges of up to 15% for a maximum of 150 days to address balance-of-payments deficits or significant currency depreciation. At the conclusion of the 150-day period, Congress must determine whether to extend or allow the tariffs to expire.
Key Provisions of Section 122 Tariffs
- 10% Universal Tariff:
A 10% tariff has been applied to imports from all countries. This replaces the previously imposed reciprocal IEEPA tariffs. - Trade Agreement Rates:
At present, the 10% Section 122 tariff appears to supersede previously negotiated trade agreement rates. Attempts to enter goods under prior negotiated rates on February 24, 2026 were rejected by CBP, with only the new Section 122 rate accepted. No guidance has yet been issued regarding whether this will be corrected - Additional Duties Apply. The Section 122 tariff is assessed in addition to:
- Column 1 general duty rates
- Section 301 tariffs
- Section 232 tariffs
- Antidumping (ADD) and Countervailing Duties (CVD), where applicable
- No U.S. Content Exemption:
There is currently no exemption for U.S. content under Section 122. - Bonded Warehouse Withdrawals:
It is anticipated that bonded warehouse withdrawals will be subject to the duty rate in effect at the time of withdrawal. However, customs attorneys are divided regarding the interaction between the in-transit exemption and applicable duty rates. - Duty Drawback:
Duty drawback is permitted on Section 122 tariffs. - Postal Entries:
Postal imports are now subject to the 10% Section 122 tariff.
This summary reflects the information available at this time. As further clarification is issued by CBP and the courts, CV International will continue to provide updates via email communications. For specific legal guidance, please consult your customs attorney.
Disclaimer: The following is provided for informational purposes only and does not constitute legal advice. Importers are encouraged to consult qualified international trade counsel regarding specific questions or legal strategy.
Best Regards,
John Boomhover, LCB
Director of Compliance & Customs Services