The Supreme Court’s decision on 2/20/2026 related to tariffs only affects one tool (IEEPA) of the Trump Administration’s key policy to utilize tariffs as a means to shape global trade and foreign policy.  Accordingly, U.S. tariffs will continue to be a part of the global business environment.  Goods which qualify under the USMCA (U.S.-Mexico-Canada Agreement) should remain unaffected by all tariffs (protects 86% of Mexico’s exports to the U.S. and over 90% of Canada’s exports to the U.S.).

Supreme Court Ruling Only Impacts IEEPA Tariffs – Other Tariffs Remain in Place

The primary advantage of the use of the International Emergency Economic Powers Act (IEEPA) to impose U.S. tariffs was its speed because its use did not require an investigation by the office of the U.S. Trade Representative (USTR) or the Department of Commerce nor did it require approval by Congress.  The Supreme Court’s decision only addressed the constitutionality of IEEPA tariffs. Extensive tariffs that President Trump has imposed pursuant to other statutory authorities (see below) will remain in place.

Refunds of IEEPA Tariffs – Uncertainty and Delays

The Supreme Court did NOT address whether the hundreds of billions already collected in IEEPA tariff revenue will need to be refunded.  Refunds would be handled by U.S. Customs on an entry-by-entry basis (millions of import entries during the period).  The Trump administration will likely argue that the Supreme Court decision was only “injunctive relief,” that refunds will harm the U.S. Treasury and, therefore, that refunds are NOT the appropriate response.  Expect considerable delays of any potential tariff refunds.

Tariffs which are Legally Valid

The Trump Administration is committed to continuing with the President’s use of tariffs to shape global trade policy.  Alternative tools will be implemented:

• Section 122 of the Trade Act of 1974  Section 122 empowers the President to address “large and serious” balance-of-payments deficits through import surcharges of up to 15%, import quotas, or some combination of the two.  As a temporary measure for 150 days, on 2/24/2026 President Trump imposed a 10% global tariff on all countries.  This tariff will increase to 15% shortly.  This measure allows the Trump administration to replicate most of the IEEPA tariff structure through Section 122 while it implements longer-term, more permanent tariffs under Section 232 and Section 301. 

• Section 232 of the Trade Act of 1962  Section 232 tariffs are generally product-specific and are imposed due to threats to national security (supply chain vulnerabilities, defense requirements, and threats to critical infrastructure).  Section 232 does not require Congressional approval, but it does require that the Secretary of Commerce conduct a Section 232 investigation to determine whether imported goods “threaten to impair” U.S. national security. There is no maximum tariff rate under Section 232.  Section 232 tariffs already in force include steel, aluminum, and copper (50% tariff) and autos and auto parts (25%).  Section 232 investigations currently in process include trucks, semiconductors, commercial aircraft and jet engines, timber and lumber, pharmaceuticals, critical minerals, unmanned aircraft systems, batteries, and telecommunications.

• Section 301 of the Trade Act of 1974  Section 301 tariffs are generally country-specific and imposed on foreign goods to counter unfair trade practices that restrict commerce.  Section 301 does not require Congressional approval, but it does require a USTR investigation.  There is no maximum tariff rate under Section 301.  Investigations for China and Brazil are currently underway with most major trading partners in scope for future investigations.  In 2018 President Trump imposed a 25% tariff on certain Chinese products for IP theft and forced technology transfers and in 2024 President Biden imposed 100% tariffs on Chinese EV vehicles.