The Supreme Court’s IEEPA Tariff Ruling: Next Steps, Potential Refunds, and Guidance for Businesses

Update: February 21

Today, President Trump announced that he will increase the 10% global tariff, announced on February 20, to a 15% global tariff. The President stated that this increase was in response to the U.S. Supreme Court’s decision against the IEEPA tariffs. It also comes less than one day after the President’s Executive Order terminating IEEPA tariffs.

“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed and legally tested, 15% level. During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs,” President Trump posted on social media today.

Update: February 20

This evening, President Trump issued an executive order that will officially eliminate all IEEPA tariffs. Specific provisions include:

• All IEEPA actions that resulted in tariffs will be terminated “as soon as practicable.”
  • This order officially terminates IEEPA reciprocal tariffs, "fentanyl" tariffs, the additional 40% tariff on Brazil, and the previously eliminated 25% "oil" tariff on India. Tonight's order also terminates orders that laid the groundwork for potential future IEEPA duties, including those targeting nations "doing business" with Iran and nations providing oil to Cuba.
• The national emergencies that served as legal rationale for IEEPA tariffs and actions, as well as any non-IEEPA-duty-related action (such as the imposition of quotas) taken to address those national emergencies, remain unaffected by this order.

CBP has not provided an update on removing existing IEEPA codes from ACE.

Additionally, President Trump issued a separate executive order that maintains the suspension of the de minimis exemption. Provisions include:

• Any non-tariff actions, including de minimis restrictions, are still in effect.
• Postal entries will be subject to the 10% global tariff rate until the global tariff expires, or until CBP establishes a new entry process for postal shipments—whichever comes first.
  • This is a significant reduction from the IEEPA reciprocal duty rate or the $80-200/item rate that currently applies to postal entries.

Finally, President Trump published a proclamation that will implement the 10% global tariff under Section 122, effective February 24 at 12:01 a.m. ET. Provisions of the proclamation include:

• The U.S. will impose a 10% tariff on all countries of origin entered on or after February 24, 2026, through July 23, 2026.
• The 10% global tariff will not apply to certain critical minerals, energy and energy products, certain agricultural goods, USMCA-compliant Canadian and Mexican goods, goods that fall under CAFTA-DR, and many other products. These exclusions are detailed in Annexes I and II of the proclamation.
• In-transit exclusion: The 10% global tariff will not apply to goods loaded onto a vessel and in transit on their final mode of transit before 12:01 a.m. ET on February 24, 2026, and entered or withdrawn for consumption before 12:01 a.m. ET on February 28, 2026.
• Section 232 exclusions: The 10% global tariff will not apply to any goods currently or later subject to Section 232 tariffs.
  • The 10% global tariff will apply to the non-metal content of steel, aluminum, iron, and semi-finished and intensive copper products, as well as the non-metal content of their derivative products.

Originally Published February 20, 2026:

On February 20, the U.S. Supreme Court struck down the Trump administration’s International Emergency Economic Powers Act (IEEPA) tariffs. In a landmark 6-3 decision, the Supreme Court held that IEEPA permits the president to regulate imports during national emergencies, but does not clearly authorize the imposition of duties.

Today’s Supreme Court decision reaffirms the Court of International Trade (CIT)’s initial ruling against the IEEPA tariffs last May, as well as the U.S. Court of Appeals for the Federal Circuit’s decision to uphold the CIT’s ruling.

President Trump’s Response

Following this morning’s ruling, President Trump announced that he would impose a new 10% global tariff under Section 122, “over and above normal tariffs already being charged.” President Trump indicated the new duty would take effect on Monday, February 23, pending official confirmation via executive order or Federal Register notice.

Until President Trump issues an executive order, the precise stacking implications of the new duty remain unclear. Based on President Trump’s language, the administration is expected to honor existing trade agreements and refrain from stacking an additional 10% on top of them.

President Trump also confirmed that Section 301 and Section 232 tariffs remain in full effect, and announced that his administration would initiate several Section 301 and 232 investigations that could lay the groundwork for new long-term duties.

Tariffs Impacted by the Supreme Court Ruling

Today’s Supreme Court ruling impacts all IEEPA reciprocal tariffs, as well as IEEPA “fentanyl” tariffs on China, Canada, and Mexico.

The ruling does not directly impact the additional 40% IEEPA tariff on Brazil imposed last August, Section 232 tariffs, or Section 301 tariffs. However, in a January 14 order, the CIT stated that the Supreme Court decision would “apply to all current and future similarly situated plaintiffs.” This suggests that the Supreme Court’s ruling could eventually apply to other IEEPA tariffs: the additional 40% duty on Brazil; the now-eliminated 25% “oil” duty on India, should President Trump choose to reinstate it; and others.

What’s Next for Existing IEEPA Tariffs?

We believe that CBP will stop collecting IEEPA tariff revenue, but not immediately. As the party ultimately responsible for operationalizing today’s Supreme Court ruling, CBP will continue to apply and collect IEEPA tariffs until it issues official guidance to the contrary and updates the Automated Commercial Environment (ACE) accordingly. It is unclear when CBP will do so.

For recent shipments whose duties haven’t yet been paid: Unless CBP reprograms ACE in the near future, entries for these shipments will go on statement and will be subject to IEEPA duties. If and when CBP announces a refund process, importers with shipments cleared in the last 10 days may be able to adjust their entries prior to duty payment.

How Is Flexport Proceeding?

Until CBP takes formal action in response to today’s ruling, Flexport will continue to file entries as usual to prevent any freight holds or delays. We will also continue filing protests and Post Summary Corrections (PSCs) for our customers.

Flexport is actively working with our customers on their active filings to ensure continuity, accuracy, and readiness. Once CBP issues formal guidance with corresponding system updates, we may have a limited correction window of ~8 days to adjust entries prior to statement. Flexport is closely monitoring developments with CBP so that we can take immediate action for our customers.

Until CBP provides further instructions, the Flexport Tariff Simulator will continue to reflect IEEPA tariffs. Additionally, the Tariff Simulator will not reflect the announcement of the 10% global tariff until it is published in the Federal Register.

Can Businesses Expect Refunds?

The future of refunds is unclear. At this time, CBP has not offered refunds. The case brought to the Supreme Court concerns the legality of using IEEPA to deploy tariffs, not the refunds themselves. The Court provided no guidance on refunds, because it wasn’t in their scope.

President Trump, in his press conference, criticized the Court for not providing clarity on whether tariffs would be refunded and stated that the question of refunds would be tied up in litigation for years.

However, during the course of the IEEPA litigation, the U.S. Department of Justice clearly stated:

“If tariffs imposed on plaintiffs during these appeals are ultimately held unlawful, then the government will issue refunds to plaintiffs…”

See docket page 28 in the government’s motion, V.O.S. Selections, Inc. v. Trump, Appeal No. 25-1812 (Fed. Cir. filed May 28, 2025), May 29, 2025, ECF No. 6.

Flexport’s Guidance for Customers: Take Action Today

• Calculate Your Potential Tariff Refund: Flexport’s Tariff Refund Calculator is the simplest and fastest way to prepare for potential refunds. We let you instantly calculate total duties that are potentially eligible for refunds, break them down by duty category, and stay on top of important deadlines to quickly understand your potential return if CBP issues refunds. Get started here.
• Get Access to Your ACE Portal: To estimate your refunds and ensure you’re prepared for what comes next, you must create an account and get access to your ACE portal. Here are instructions.
• Evaluate Your Entries: Evaluate where entries are in the liquidation lifecycle: preliquidation (0-300 days), liquidated (300-314 days after entry filings + 180 days), or post-liquidation (180 days after liquidation).
• File a Protest for Entries Close to the Protest Deadline: We recommend filing a protest for entries that are close to the protest deadline (i.e., 180 days from the liquidation date). If you need support filing a protest, Flexport’s Trade Advisory group can help. We recommend reaching out to the Trade Advisory team at least two months before the protest deadline to give our team time to prepare the protest filing.

Flexport will continue to monitor all new developments and keep customers up to date with our latest guidance. To talk with a Flexport expert, get in touch.