Alert: US Supreme Court Strikes Down IEEPA Tariffs

Major Shift in US Trade Policy

On 20 February 2026, the United States Supreme Court struck down several tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including the “reciprocal” tariffs, fentanyl-related tariffs on China, Canada and Mexico, and additional duties on Brazil (40%) and India (25%). Tariffs imposed under other legal mechanisms, namely Section 232 (e.g. autos, steel, aluminium) and Section 301 (e.g. Chinese goods), are not affected.

What is Changing?

Within hours of the ruling, the US President issued three Executive Orders introducing transitional measures:

• 1. Termination of certain IEEPA tariff actions: Formally ends multiple IEEPA-based tariffs, including the IEEPA Fentanyl tariffs, Reciprocal Tariffs, and escalating tariffs on Brazil, India, Cuba, Iran, and Venezuelan oil.
• 2. Temporary 15% blanket tariff: Establishes a blanket 15% tariff on all imports under Section 122 of the Trade Act of 1974 for 150 days (effective 24 February to 24 July 2026). This includes vital exceptions for in-transit goods loaded before 24 February and specific critical materials.
• 3. Continued suspension of de minimis treatment: Low-value shipments will remain subject to duties and full customs formalities.

Refunds of Duties Already Paid

The Supreme Court did not address the refund of duties already collected under IEEPA. This issue is expected to proceed before the United States Court of International Trade. While unlawfully collected duties must generally be repaid, the refund process is expected to be complex and lengthy.

Implications for Global Supply Chains

To mitigate operational, financial, and legal risks arising from these sudden tariff changes, we advise our clients to consider the following practical measures:

• Verify in-transit eligibility documentation: Secure proof of loading dates (e.g. bills of lading) for shipments seeking exemption.
• Strengthen customs compliance processes: Prepare for increased formal entries due to the continued suspension of de minimis treatment.
• Review Cost Impacts: Be aware that landed-costs may change due to these regulatory developments.
• Explore Supply-Chain alternatives: Where appropriate, we can discuss alternative routing, timing adjustments, or bonded storage during the 150-day period.