US tariffs after the IEEPA ruling: what is left, what replaced it and how refunds work
Summary: On 20 February 2026 the US Supreme Court struck down the tariffs imposed under emergency powers (IEEPA). They were replaced first by a temporary 10% surcharge and, since 24 July 2026, by Section 301 tariffs of 10% to 12.5%, while Section 232 tariffs remain. Duties paid under IEEPA can be refunded, but only to the importer of record and through a phased process.
Few trade rules changed as often in 2025 and 2026 as US tariffs. For anyone who sells to or buys from the United States, three questions matter: which tariffs apply today, which ones were illegal, and who can recover what was paid. This article answers all three with dates and official sources.
What did the Supreme Court decide?
On 20 February 2026, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not allow the President to impose tariffs. The decision removed the legal basis for about US$35.46 billion in duties collected on roughly 8.3 million entries, according to WilmerHale.
That same day, the administration revoked the IEEPA tariff orders and announced a 10% temporary surcharge on imports from all countries under Section 122 of the Trade Act of 1974, effective 24 February 2026. Section 122 caps that kind of surcharge at 150 days.
Which tariffs replaced them?
The Section 122 surcharge ended on 24 July 2026 and was replaced by Section 301 tariffs of 10% to 12.5% on most US trading partners, imposed after a forced labor investigation by the US Trade Representative, explains Wipfli. Section 301 has no time limit, and the Court of International Trade has ruled it legal. USMCA-compliant goods and goods already covered by Section 232 are excluded.
Section 232 tariffs, applied for national security reasons, remain in force at 10% to 50% depending on the product: steel, aluminum, copper, autos, lumber and others. More Section 301 investigations are open, including industrial excess capacity, pharmaceutical pricing and digital services taxes, so new tariffs are expected.
| Measure | Rate | Status |
|---|---|---|
| IEEPA tariffs | Varied by country | Struck down on 20 Feb 2026; refundable |
| Section 122 surcharge | 10% | Applied from 24 Feb to 24 Jul 2026; challenged in court |
| Section 301 (forced labor) | 10% to 12.5% in three tiers | In force since 24 Jul 2026 |
| Section 232 | 10% to 50% by product | In force (steel, aluminum, autos, lumber and more) |
How do IEEPA refunds work?
In March 2026 the Court of International Trade ordered US Customs (CBP) to refund all IEEPA duties and allowed it to build a dedicated system, CAPE (Consolidated Administration and Processing of Entries), inside its ACE portal. Refunds are filed electronically by the importer or its customs broker, in phases:
| Phase | Available since | What it covers |
|---|---|---|
| Phase 1 | 20 Apr 2026 | Unliquidated entries and entries liquidated within the last 80 days |
| Phase 2 | 29 Jun 2026 | Entries flagged for reconciliation with no reconciliation entry filed |
| Phase 3 | 6 Oct 2026 | Entries liquidated more than 80 days ago, for importers with a refund case before the court |
To file, the importer needs an active ACE account and must be registered for ACH Refund payments, as CBP explains on its IEEPA refunds page. Phase 3 timing depends on when the importer of record number was accepted, and the government has said it will appeal the order to refund everyone, according to Thompson Coburn. There is no refund path yet for the Section 122 surcharge; that depends on the pending lawsuits.
Who can claim the refund?
The refund goes to the importer of record, the party that appears on the customs entry and paid the duties. That is why the Incoterm used in each sale matters:
- If you sold DDP, you or your agent acted as importer of record in the United States and the refund belongs to you.
- If you sold FOB, CIF or EXW, the US buyer was the importer of record and is the one who can claim it. Check your contracts in case they say how refunds are shared.
- If a courier or forwarder cleared on your behalf, ask who appeared as importer of record and whether they will file the claim for you.
What should you do now?
- Confirm who was the importer of record
- Review the customs entries for 2025 and 2026 shipments to the United States.
- Check the Incoterm of each sale. See our Incoterms guide.
- Get access ready
- Active ACE account.
- ACH Refund registration to receive payments.
- List the entries with IEEPA duties
- Note the liquidation status of each one: it determines the phase you can use.
- File through CAPE with your broker
- Keep the supporting documents for each entry.
- Recalculate your costs with today’s tariffs
- Section 301 and 232 depend on the HS code and the country of origin. See our HS codes guide and how to calculate landed cost.
In summary
The IEEPA tariffs no longer exist and what was paid can be recovered, but only by the importer of record and through CBP’s phases. Meanwhile, the United States did not lower its tariff wall: it rebuilt it on other legal bases, Section 301 and Section 232, which are harder to challenge. Knowing who imports, under which code and from which origin is now as important as the freight rate.
With BLS: before your next shipment to the United States, ask us to review the classification and the tariffs that apply by origin, so the duty is in your price and not a surprise at destination.
Sources
- WilmerHale, the Supreme Court strikes down IEEPA tariffs: www.wilmerhale.com
- Wipfli, the state of US tariffs in mid-2026: www.wipfli.com
- Thompson Hine, CBP launches Phase 2 of the refund process: www.thompsonhine.com
- Thompson Coburn, CBP confirms Phase 3 of the refund process: www.thompsoncoburn.com
- CBP, IEEPA duty refunds: www.cbp.gov
