On February 20, 2026, the U.S. Supreme Court ruled that sweeping tariffs introduced under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority.
The judgment removes the legal basis behind the “reciprocal” tariffs, but it does not eliminate tariffs altogether. Instead, it creates a transition period where some duties may be recoverable while new ones are already in force.
What the Court Decision Means
The Court determined that tariffs effectively function as taxation and therefore require explicit Congressional authorization. While IEEPA allows trade controls during emergencies, it does not grant the authority to impose broad import duties.
This creates a dual reality:
- Certain previously collected duties may now be refundable
- New tariffs have already been introduced under a separate law
- Legal challenges and procedural guidance may continue for years
Businesses may be able to recover funds, but only if documentation and deadlines are preserved.
Replacement Tariff
Following the ruling, the administration introduced a 10% global import surcharge under Section 122 of the Trade Act.
Unlike the earlier tariffs, this measure is tightly constrained:
- Maximum duration: 150 days unless extended by Congress
- Maximum rate: 15% (currently 10%)
- Purpose: short-term balance-of-payments stabilization
Important exclusions apply, including:
- Energy products
- Pharmaceuticals
- Selected electronics
- Aerospace and vehicles
- USMCA-qualifying imports
- Goods already subject to national security tariffs
There is also a narrowly defined “goods in transit” exemption based on entry timing requirements.
Meanwhile, international trade negotiations remain unsettled, with partners seeking clarity on how future tariffs will be applied — meaning policy risk remains elevated for import planning.
Refunds: Opportunity and Risk
Potential recovery pathways depend on entry status and timing:
- Post-summary corrections for unliquidated entries
- Formal protests within statutory deadlines
- Litigation at the Court of International Trade for older entries
Authorities have not yet finalized refund procedures and waiting for guidance could result in missed recovery rights.
Importers should now:
- Identify affected entries
- Confirm duty payments
- Preserve protest timelines
- Coordinate drawback eligibility
Companies that understand their exposure early may potentially recover costs, while those that react late may permanently absorb duties that could have been reclaimed.
How Global Forwarding Can Help
Global Forwarding is actively monitoring federal agency guidance and reviewing operational implications for import entries and compliance strategy.
Our U.S. customs and trade specialists help businesses:
- Assess tariff exposure across historical entries
- Prepare documentation for refund eligibility
- Protect statutory protest deadlines
- Coordinate duty drawback opportunities
- Adjust import strategies for ongoing tariff changes
Tariff policy is evolving quickly, but refund rights are governed by fixed timelines. Early review can determine whether duties become recoverable. Contact Global Forwarding to review your entries and build a recovery and compliance strategy before critical filing windows close.
