As of February 24, 2026
IEEPA Ruling & Potential Refund Considerations
- Some IEEPA tariffs have been ruled unlawful and have been officially stopped starting on February 24, 2026.
- For refunds, further instructions are expected from the Court of International Trade (CIT). At this stage, there is no confirmed process or timeline, and public statements suggest resolution may take several years.
- In the meantime, it is strongly recommended to keep all eligible entries unliquidated (open), where legally allowed. This helps preserve the right to claim refunds once final judicial or regulatory guidance is issued.
Section 122 Temporary Import Duty (up to 150 days)
- The temporary duty is expected to take effect February 24, 2026. However, the Executive Order (EO) has not yet been formally published, and the Federal Register notice and CBP CSMS implementation guidance are still pending.
- The scope of any exemptions, operational details, and HTS programming will only be confirmed after official issuance. Until then, no assumptions should be made about duty applicability or possible exclusions.
Section 301, 232, 122, and 338 Authorities
As implementation risk remains elevated and measures may apply broadly rather than to specific countries only, it is essential to continue monitoring developments under these tariff authorities:
- Section 301 (Trade Act of 1974) – Enables tariffs on countries engaging in “unfair” or discriminatory trade practices. Most frequently applied to China.
- Section 232 (Trade Expansion Act of 1962) – Permits tariffs on imports deemed a national security risk. Previously applied to steel and aluminum, and under consideration for electronics, semiconductors, and automobiles.
- Section 122 (Trade Act of 1974) – Allows temporary import surcharges (typically around 10–15%) to address balance-of-payments issues or significant trade deficits. Often used for broad, short-term measures.
- Section 338 (Tariff Act of 1930) – A rarely used but powerful authority allowing duties of up to 50% on goods from countries viewed as discriminating against US commerce.
As of February 23, 2026
Here’s a quick update on the status of tariffs and a summary of the Executive Orders (EOs) issued since the Supreme Court’s ruling yesterday. “Officially” (based on an Executive Order issued last night) we are now at a global 10% tariff, replacing the previous country-specific IEEPA tariffs.
Unofficially, the President subsequently posted on Truth Social an “immediate” increase of the rate to 15%. There is no EO yet supporting the increase, but we’ll keep you advised. Below are the key points related to the IEEPA and the new 122 tariffs.
IEEPA Tariffs
We don’t know when the IEEPA tariffs officially end
- An Executive Order has been issued rescinding all existing IEEPA tariffs (including those not yet implemented like the Cuba tariff) “as soon as is practicable”. CBP subsequently issued messaging last night indicating they are reviewing the SCOTUS decision and will issue guidance “as soon as it’s available”.
Customs attorneys recommendations
- Importers continue to pay the IEEPA tariffs until CBP issues guidance on the official IEEPA tariff termination date.
Which duties to pay during the transition
- Importers should have the usual 10-day window to correct entries and remove IEEPA tariffs if CBP deems it permissible in their upcoming guidance. Importers will need to watch entries carefully during the next couple of weeks to optimize duty payments based on the IEEPA tariff termination and the new Section 122 tariff implementation dates.
What doesn’t change
- The de minimis ban remains in place as do the Section 301 (China) and Section 232 (steel, aluminum, copper, vehicle, lumber, etc.) tariffs.
What about refunds?
- We do not know how refunds may be issued for entries that are outside the 10-day window, including those that have liquidated. This decision is now up to the Court of International Trade (CIT). Most Customs attorneys recommend that importers continue to monitor liquidations and protest liquidation as applicable until more information becomes available from the CIT.
New Section 122 Tariffs
The new 10% (or 15% based on a Truth Social post) Section 122 Tariff begins February 24, 2026
- The tariff, by law, can only remain in effect for 150 days and expires on July 24th, 2026, at 12:01am, unless Congress extends it.
Goods in Annex I and Annex II are exempt from the Section 122 tariff.
- The existing IEEPA Annex reciprocal exemptions (critical minerals, metals, energy products, natural resources, ag, pharma, electronics, aerospace) extend to the new Section 122 tariff.
All goods subject to Section 232 tariffs are exempt from the Section 122 tariff
- This includes aluminum, steel, copper, lumber, vehicles, semiconductors, etc. Only the part of the import covered by the 232 tariff is exempt from the Section 122 tariff. For example, the non-metal content of an aluminum product is still subject to the Section 122 tariff.
Goods that qualify under USMCA are exempt from the Section 122 tariff.
- USMCA-qualifying goods from Canada and Mexico are exempt from the tariff.
Exempt Categories Under Section 122
- Informational materials, donations, and Chapter 98 articles are exempt from the Section 122 tariff.
Textile and apparel articles covered under the DR/CAFTA Free Trade Agreement are exempt from the Section 122 tariff.
- Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua qualifying textile and apparel goods.
Transit Timing Exception Under Section 122
- Goods loaded onto a vessel at the port of lading and in transit on the final mode of transit before 12:01am EST on February 24, 2026, and are entered/arrive before 12:01am EST on February 28, 2026, are exempt from the Section 122 tariff.
De Minimis Treatment Update
- The new Section 122 applies to de minimis shipments.
Impact Examples
Goods from Mexico that do not qualify under USMCA
- Should enjoy a 10-15% tariff reduction (depending on the final Section 122 rate – 10% or 15%).
Goods from Canada that do not qualify under USMCA
- Should enjoy a 20-25% tariff reduction (depending on the final Section 122 rate – 10% or 15%).
Goods from the EU (and some other countries with framework agreements)
- Could see an increase in cost since the Section 122 tariff will be in addition to the base duty rate. Note that the Administration has not indicated how the existing framework agreements, like the one with the EU, will be impacted by the changes.
Goods from China, Taiwan & Vietnam
- Should enjoy a 5-10% tariff reduction (depending on the final Section 122 rate – 10% or 15%).
Goods from India
- Should enjoy a 10-15% tariff reduction (depending on the final Section 122 rate – 10% or 15%).
As of February 20, 2026
The Supreme Court ruled today that President Trump’s IEEPA tariffs are unlawful. While the decision creates real opportunities for shippers, it also raises new questions about refund eligibility, timing, and the broader impact on US trade policy. Here are the five things you should know to understand how this ruling may affect your business.
What It Means for Your Supply Chain
Only about half of the Administration’s tariffs are affected
- The ruling applies to global reciprocal tariffs, the “fentanyl tariffs” on China, Mexico, and Canada, and the remaining IEEPA tariff on Brazil. The Administration’s Section 232 tariffs on products like steel, aluminum, copper, lumber, furniture, and semiconductors remain unchanged.
Refund questions now move to the Court of International Trade
- The Supreme Court did not rule on refunds. Instead, it sent the question back to the Court of International Trade (the CIT), which has jurisdiction. We will need to wait for the CIT to clarify the next steps regarding refund eligibility and payment processes.
Duty collection should technically stop immediately, but expect short-term uncertainty
- In theory, the Administration should stop collecting these duties right away. In practice, we do not yet know how quickly agencies will act, so it is prudent to plan for continued duty payments in the near term. Follow our updates closely as the situation evolves.
The Administration has other tariff tools — but may pause new actions
- The government retains limited authority to impose tariffs under other statutes, though those mechanisms have more guardrails. In a press conference today, the President announced that he’ll be immediately implementing a global 10% tariff under one of those authorities (Section 122). Nothing official has been published, but we’ll keep you informed as new information becomes available.
The ruling creates uncertainty around recent “framework” agreements
- The Supreme Court’s decision may affect the terms of several recent trade “frameworks” involving Taiwan, the U.K., South Korea, Japan, and EU members. It is too early to know how these trade deals may be impacted by the ruling since the IEEPA tariffs in those agreements are now unlawful.
Steps Importers Should Take Now
Although the Supreme Court has issued its ruling, several details, especially around refunds, still depend on how the Court of International Trade responds. Importers should take proactive steps now to preserve their rights to potential refunds and prepare for the potential financial impacts of any new tariffs implemented.
Sign up for a free ACE account
- This gives you full visibility into your entries and IEEPA-related duty payments across affected shipments.
Export ACE reports
- These reports help you identify which entries included IEEPA duties and when those entries were liquidated. Accurate records will be essential if refunds become available.
Monitor liquidations and consider filing protests
- If an entry liquidates and the 180-day protest window expires before the CIT determines refund eligibility, you may lose the right to recover duties. Many trade experts recommend filing protests before the window closes to preserve refund options.
Review your bond exposure
- Filing protests or extending liquidation timelines can increase bond liability. Work with your customs broker or compliance team to ensure your bond coverage remains sufficient.
Register for an ACH Refund account in ACE
- If refunds are eventually approved, ACH is the only way to receive those refunds. Manual checks are no longer issued by the government. If you do not have an ACH Refund Account, your refunds will be held by the government in a suspense account.
Keep expectations realistic
- Even though the Supreme Court struck down the IEEPA tariffs, it is still possible for the Administration to reinstate tariffs through other legal authorities. Build flexibility into your costing, pricing, and logistics planning until the CIT provides firm direction.
How Dimerco Can Help
Dimerco’s customs brokerage and trade compliance teams are monitoring developments closely. Once the CIT provides clarification on refund eligibility and timing, we will advise you on the practical steps to capture any financial benefits and adjust your supply chain strategy with confidence.
Start a discussion today to explore your options.