Last week, we reported on the Supreme Court’s decision striking down tariffs under the International Emergency Economic Powers Act (“IEEPA”). We promised to keep you informed as developments unfolded and here is the latest you need to know.
New Tariffs Are Already in Place. Mere hours after the ruling, President Trump invoked the Trade Act of 1974 to impose a 10% global tariff on nearly all imports, effective February 24, 2026. The President indicated these tariffs will likely increase to the statutory maximum of 15% in the coming days or weeks. Tariffs under the Trade Act are short-lived, however, and expire automatically in 150 days (July 24, 2026) unless Congress votes to extend them.
Additional Tariffs, Under Different Laws, Are Likely. During the State of the Union address, the President stated that “Congressional action will not be necessary” and discouraged lawmakers from involving themselves in tariffs or trade policy. The administration plans to pursue other mechanisms instead, such as using national security or unfair trade practice laws to maintain or impose tariffs beyond the 150-day window.
IEEPA Tariffs Are No Longer Being Collected. U.S. Customs and Border Protection confirmed that IEEPA tariffs are no longer being collected on or after February 24, 2026, in light of the Supreme Court’s ruling.
The Refund Issue Is Playing Out On Multiple Fronts. Whether and how the billions of dollars collected under IEEPA should be refunded is expected to be taken up by U.S. Court of International Trade, where resolution could take months or years. In the interim, over 1,000 businesses have filed protective refund lawsuits in various federal courts. There is also the potential for legislative action, including the proposed “Tariff Refund Act of 2026,” which would require IEEPA refunds to be paid within 180 days, plus interest.
