Supreme Court Strikes Down IEEPA Tariffs, But White House Announces New 10% Global Tariff in Response

This article was updated on February 27, 2026.

On Friday, February 20, 2026, the U.S. Supreme Court ruled in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. In response, President Trump has announced that his administration will impose similar tariffs under 19 U.S.C. § 2132 (Section 122 of the Trade Act of 1974, or “Section 122”) in the short term and initiate new trade investigations under other statutory authorities.

This landmark decision invalidates all tariffs imposed under IEEPA since February 2025. In a 6-3 decision, the Court held that the power to impose tariffs rests with Congress and that IEEPA does not provide the explicit delegation required to transfer this authority to the President. Chief Justice Roberts wrote the majority opinion, with concurrences from Justices Gorsuch, Barrett, Kagan, Jackson, and Sotomayor. Justice Kavanaugh dissented, joined by Justices Thomas and Alito; Justice Thomas also filed a separate dissent.  The majority did not address refunds, though the dissent suggests they may be required and will be “messy.” The combined opinions exceed 100 pages, and additional implications may emerge upon further review. President Trump lamented the fact that the decision did not address refunds and speculated that it will be an issue for the courts to decide. 

Honigman's team is monitoring this rapidly evolving situation and is ready to support our clients. For questions, please contact Angela Gamalski, Daniel Wendt, Chauncey Mayfield, Karl Hochkammer, or another member of the Honigman Executive Order Task Force. In particular, Honigman has several attorneys who are members of the CIT bar available to assist clients in pursuing relief. 

What Happens Next – IEEPA Tariffs

On the same day as the Supreme Court decision, President Trump issued an executive order stating that IEEPA tariffs “shall no longer be in effect and, as soon as practicable, shall no longer be collected.” U.S. Customs and Border Protection (CBP) issued instructions to halt collections of IEEPA tariffs by the end of Monday, February 23, 2026.   Thus, importers are no longer facing IEEPA tariffs for current imports, in accordance with the Supreme Court decision.   

What Happens Next – IEEPA Tariff Refunds

It is an open issue of whether and how CBP or the U.S. Treasury Department will issue refunds for the IEEPA tariffs paid by importers in 2025 and 2026, although it seems quite likely that refunds will be available. The Supreme Court remanded matters to the Federal Circuit and the CIT, while dismissing the relevant case in the district court for DC, based on a lack of jurisdiction. This aspect of the holding confirms the CIT’s exclusive jurisdiction over tariff-related matters.

The U.S. Department of Justice, on behalf of the Trump Administration, has repeatedly stated in litigation that if the Supreme Court invalidates IEEPA tariffs, the government will refund the duties with interest. The CIT has also ruled that the government will be estopped from arguing otherwise. That said, significant uncertainty remains, including whether the government will take positions that restrict potential relief for importers. President Trump has commented that it may be in the courts for years, although that would presumably involve the DOJ arguing that importers are not entitled to refunds. 

We expect the Trump Administration to articulate an official position on refunds in mid-March, based on the current litigation schedule. We cover the developments at the CIT and Federal Circuit in this Alert: Seeking Refunds After Learning Resources, Inc. v. Trump for IEEPA Tariffs. This client alert includes detailed guidance on what importers should do now to prepare for refund claims, and we plan to update it as new developments arise.

What Happens Next – Section 122 Tariffs

On February 20, 2026, the President signed a proclamation authorizing tariffs under Section 122, at 10% for imports from all countries (“Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems”).   Section 122 allows these tariffs to be imposed if there is a balance-of-payments emergency, but only for 150 days (until July 2026), without Congressional extension. The proclamation set forth the basis for the action and said that the tariffs would be effective Tuesday, February 24, 2026, although many but not all of the same exclusions that existed for IEEPA tariffs continue for Section 122 tariffs.  

The proclamation states that the Section 122 tariffs are in addition to other tariffs, such as the general tariff and Section 301 duties. Exceptions apply, however. For example, Section 122 does not apply to goods that qualify for preferential treatment under USMCA or to goods subject to Section 232 duties.   When Section 232 duties apply to only a portion of a product (for example, the portion of a product’s value related to steel or aluminum), the Section 122 duties apply only to the remaining portion of the product not subject to Section 232 duties.  

On Monday, February 23, 2026, CBP issued instructions for collecting tariffs under Section 122. CBP stated that the new Section 122 tariffs would begin as of midnight on February 24, 2026, although the CBP instructions did do not apply to some shipments already on the water (namely, if the goods “were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. eastern standard time on February 24, 2026” and are also “entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern standard time on February 28, 2026”).

As noted, the rate is currently set at 10%, but there is anticipation that the rate may increase to the maximum 15%, based on a social media statement by President Trump on February 21, 2026. On February 25, 2026, the US Trade Representative Jamieson Greer also commented that the Section 122 tariffs may increase, at least for some countries, but did not provide specifics. Any implementation of the Section 122 tariffs at different rates may be prohibited or restricted through additional procedures under the law, although that is an open issue.  

Barring any intervening action by Courts or Congress, it is reasonable to expect these tariffs to remain in place until July 24, 2026.  

What Happens Next – Tariffs under Section 301, Section 232, and more

The White House and other administration officials have indicated that they will use the 150 days of tariffs under Section 122 to pursue additional tariffs under other laws – namely, Section 232 of the Trade Expansion Act of 1962 (“Section 232”) and Section 301 of the Trade Act of 1974 (“Section 301”).  

Under Section 232, the President is authorized to impose tariffs for national security reasons, after the U.S. Department of Commerce (“Commerce”) conducts an investigation. The Trump Administration has already imposed tariffs on steel, aluminum, copper, autos, timber, lumber, and other products using this statute. There are various investigations open at the moment (for example, robotics and machinery), and the press is reporting that new industrial sectors are likely to be targeted soon. Assuming Commerce follows the investigation process, these tariffs are viewed as relatively secure from legal challenge. Commerce’s website listing Section 232 investigations is here.

Similarly, Section 301 authorizes the U.S. Trade Representative, also with action by the President, to impose tariffs following an investigation into unfair trade practices. Many importers are already familiar with the Section 301 tariffs on goods from China, which arose from an investigation initiated in 2017 regarding China’s practices for technology transfer, intellectual property, and innovation. In general, the Section 301 investigations target trade practices by country, but then the tariffs can be imposed on specific products for that country; thus, there can be a lot of room for tariffs to be tailored once the investigation occurs. The USTR website for Section 301 investigations is here.

For any new investigations under Section 232 or Section 301, importers (and others) will be allowed to submit comments.

We also note that there are other statutory options available, although each has its own limitations or restrictions.

What Happens Next – Existing Trade Agreements

It is unclear at the moment how the Administration will implement the various trade agreements it had concluded, when those tariff rates had been linked to and modified under executive orders pursuant to IEEPA. If the President does order Section 122 tariffs to equal 15% and these tariffs stack on top of the standard tariff (the “column 1” or “most favored nation” tariff rate), then it is possible goods from countries covered by such agreements may now see higher tariffs than what they expected, based on the agreements. These higher tariffs are already occurring in some instances, even with tariffs set at 10%. Meanwhile, there is tumult in other countries, where governments agreed to concessions in order to avoid steep IEEPA tariffs; without that threat, some countries may walk back certain concessions, leading the Trump Administration to pursue further actions under Section 301.

What Happens Next – De Minimis (Low Value) Entries

Prior to 2025 – and still under U.S. law today – there has been the de minimis exception for imports of goods with values less than $800; under this exception, importers (including travelers) generally have not needed to pay tariffs. In the tax bill passed in 2025, Congress eliminated this exception, but not until July 1, 2027 – in other words, still more than one year away.   In the meantime, the President had used IEEPA to remove the de minimis exception prior to 2027. Following the Supreme Court’s decision, the President issued a new executive order on February 20, 2026, again affirming that the de minims exception is no longer available, still relying on IEEPA. This issue is currently subject to litigation at the CIT.  

What Importers Should Do Now

As noted, we cover our recommended next steps for importers seeking refunds in the related alert, Seeking Refunds After Learning Resources, Inc. v. Trump for IEEPA Tariffs.

For navigating new tariffs after the Supreme Court decision, we recommend that importers closely follow the news regarding current and new investigations by the Trump Administration under Section 301 (at the U.S. Trade Representative) and Section 232 (at the U.S. Department of Commerce), submitting comments and inputs when appropriate. We also expect that there will be similar litigation regarding the legitimacy of the Section 122 tariffs, and this will be headline news if any importers are able to obtain decisions that the tariffs are not in accordance with the law.

Honigman is available to assist clients in providing relevant information and advocating for industry positions during these administrative processes, as well as assessing whether any such duties have been appropriately applied to entries and – if not – pursuing relief through administrative or legal remedies.