In a 6-3 ruling, the Supreme Court struck down Trump’s IEEPA tariffs this past Friday. Later in the afternoon, Trump issued a formal Executive Order confirming the end of IEEPA tariffs. The following tariffs are impacted by the decision:

– IEEPA Fentanyl tariffs on products from China
– IEEPA Fentanyl tariffs on products from Canada and Mexico
– IEEPA Reciprocal tariffs
– IEEPA Russia Oil tariff assessed on products from India
– IEEPA “threats to the United States by the Government of Brazil” tariff on products from Brazil

Please note that the section 301 on products from China and the various section 232 tariffs are not impacted by this Supreme Court decision and will remain in effect.

When is the ruling effective?
Trump’s Executive Order is effective immediately. However, CBP will require time to implement the changes. If we had to guess, we think CBP will make adjustments over the weekend and have the elimination of the IEEPA tariffs set up in their system by Tuesday, February 24, 2026 to coincide with the implementation of Trump’s replacement, Section 122 tariffs.

What is the Section 122 Tariff?
Trump formally used his powers under Section 122 to implement a new worldwide 10% tariff. This tariff can only be implemented for 150 days barring a Congressional extension. Here are the details about this new tariff:

– Effective date: 12:01am EST on February 24, 2026
– Expiration date: 1201am EST on July 24, 2026
– Scope and Exemptions: This tariff is effective on all products from all countries with the exception of the following exemptions:
– Ocean shipments that were loaded onto the mother vessel departing before 12:01am EST on February 24, 2026 and with entry to the United States before 12:01am EST on February 28, 2026. These entries will use 9903.03.02 to exempt the product from the section 122 tariff.
– Certain HTS classifications listed under Annex I and Annex II – From what we have reviewed, we believe these are identical to the Annex II exemptions that were previously applied to the IEEPA reciprocal tariffs. Importers should still review and doublecheck to be certain. These products will be exempted from the Section 122 tariff by declaring HTS# 9903.03.03 and 9903.03.04.
– Products from Canada subject to the USMCA are exempted using HTS# 9903.03.07.
– Products from Mexico subject to the USMCA are exempted using HTS# 9903.03.08.
– Textile or apparel articles from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras or Nicaragua are exempted using HTS# 9903.03.09.
– Articles that are donations (such as food, clothing, and medicine) intended to be used to relieve human suffering are exempted using HTS# 9903.01.10.
– Articles that are informational materials are exempted using HTS# 9903.03.11.

Will Importers be able to request refunds of the IEEPA tariffs and what will be the process?
Our understanding is that the case will go back to the CIT (Court of International Trade) to clarify if and how refunds will be processed. While the CIT has previously affirmed that refunds should be issued, Trump mentioned today that these refunds may be tied up in litigation. We suspect that the Trump administration may therefore appeal any decision to refund the IEEPA tariffs already paid. Be prepared for futher delays before any refunds are issued.

What should importers do now?
– Importers MUST sign up for an ACE Portal account AND input their bank information into the ACH Refund Authorization tab (see pages 6-10 for detailed instructions). CBP will no longer send any refunds via check. If importers want to receive a refund from CBP, they must input their bank information into the ACH Refund Authorization tab within the ACE portal. We are aware that the process for completing this portal setup is very challenging. Please reach out to Great World if you run into problems during the process.
– Importers should also pay attention to their entry liquidation status. Once they have an ACE Portal set up, importers can run entry reports to see when entries liquidate. There is a timeframe for importers to request refunds from CBP. Entries that have not yet liquidated can be corrected via a Post Summary Correction (PSC). Entries typically liquidate roughly 314 days after the date of entry, although entries. Entries that have liquidated have a 180 day time limit for a Protest filing. If an entry is getting close to the 180 day Protest filing deadline, importers can reach out to us to help file a Protest to suspend the entry pending the CIT decision regarding the refund process.

Will there be additional tariffs in the future?
The Trump administration has other powers at its disposal beyond the Section 122 tariff. We expect the Trump administration to issue new Section 301 and Section 232 investigations in the coming months.

We will be closely monitoring White House and CBP publications for any new updates.