TARIFF’S TAB

With the US Supreme Court’s ruling, tariffs are back on everyone’s radar. Not that it ever really left.

On February 20, 2026, in a 6-3 ruling, the US Supreme Court struck down President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs. The majority’s decision said “In light of the breadth, history, and constitutional context of that asserted authority [tariffs], he must identify clear congressional authorization to exercise it.” All IEEPA tariffs were nullified that day.

Now what?

There are few options available to President Trump:

1. Section 122 allows the president to assess tariffs up to 15% to address significant trade imbalances. These tariffs are good for 150 days. As a point of reference, most IEEPA tariffs were 15% or less.
2. Section 232 allows for tariffs to be assessed to protect national security.
3. Section 301 allows for tariffs up to 50% to be assessed on countries with unfair trading practices. It requires the US Trade Representative to conduct an investigation to confirm such practices exist prior to initiation.
4. Section 338 allows the president to assess tariffs up to 50% on countries with unreasonable trade barriers. The general thinking on Section 338 tariffs is they were replaced by Section 301 tariffs.

Immediately following the Supreme Court’s ruling, President Trump selected Option 1 and invoked Section 122 tariffs at 10% across the board. Those tariffs went into effect on Tuesday, February 24, 2026 and will be effective for 150 days. Since then, the President has said he will increase the Section 122 tariffs to 15%.

The Section 232 tariffs on the automobile, steel, aluminum and copper industries were not part of the Court’s ruling and remain in effect.

The Supreme Court did not address if refunds should or could be issued. Since “Liberation Day” in April 2025, the US government has collected $130B in IEEPA tariffs from 301,000 importers. Thus far, 1,800 companies have filed lawsuits against the US government soliciting refunds of the tariffs they paid. Other importers are waiting for the dust to settle, and another segment of importers do not have the wherewithal to fight the legal battle and are instead selling their refund rights.