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U.S. IEEPA Tariffs
The U.S. Supreme Court announced this morning, Feb. 20, that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. This Act has been used extensively over the past year by President Trump to impose tariffs on goods being imported into the United States. These tariffs encompass, among others, those related to Fentanyl & Border Security on imports from China, Canada, and Mexico, as well as reciprocal tariffs on all countries and punitive tariffs on specific nations. While the Supreme Court ruling is still being processed, please understand the following:
For cargo that has already arrived, or will arrive prior to further systematic updates and technical instructions by U.S. Customs & Border Protection (CBP), brokers must continue to enter goods into the United States with the IEEPA tariffs. It is not systematically possible to omit the tariffs and have CBP accept the entry summary without change in the CBP system. However, if CBP programming and technical implementation for IEEPA tariff removal is complete prior to the payment of the entry summary (no later than ten days after the date of entry of the cargo), the entry summary can be updated to remove the IEEPA tariffs before payment is due to CBP.
The trade community is currently awaiting a decision from the U.S. Court of International Trade, to which the case has been remanded, to determine how to proceed.
Even without IEEPA authority, the President has sufficient statutory authority to swiftly re-establish many of the existing trade policy tariffs through other provisions. The U.S. Trade Representative (USTR) has indicated that it is prepared with a new set of tariffs should IEEPA be struck down. Although the current IEEPA tariffs were deemed illegal, they may soon be replaced by alternative measures.
This ruling did not invalidate the Section 232 (Steel, Aluminum, Copper, Automotive, Medium- & Heavy-Duty Vehicles, Lumber, etc.) or Section 301 (China) tariffs, so those will remain in effect.
The U.S. Supreme Court also determined that the U.S. Court of International Trade (CIT) is the appropriate venue for resolving disputes related to IEEPA. Consequently, the CIT will now manage any potential tariff refund processes, which would be administered by U.S. Customs and Border Protection (CBP) for importers seeking refunds.
To avoid delays in receipt of refund payments, if they become available, we strongly recommend that all importers ensure their ACE Portal account is active and that the ACH Refund Authorization form is completed by the Trade Account Owner, as CBP has been issuing refunds electronically only since February 6, 2026.
We will keep you updated as information becomes available.
U.S. Section 122 Tariff Authority
Following President Trump’s Feb. 20 announcement, we are providing guidance regarding Section 122 of the Trade Act of 1974, which authorizes the President to impose a temporary, across‑the‑board import surcharge of up to 15% for no more than 150 days to address a large and serious balance‑of‑payments deficit.
The Administration has announced a 10% global tariff under this authority, which took effect on Feb. 24 at 12:01 a.m. ET for a 150‑day period (ending 12:01 am on July 24), subject to exclusions identified by the White House, and requiring Congressional approval for extension.
As with the IEEPA update above, operational implementation will rely on CBP programming, HTSUS updates, and ACE instructions, and importers should monitor ACE Portal and CSMS notices and CBP guidance for timing and any entry‑summary adjustments permitted before payment due dates.
Please note:
- For cargo that has already arrived, or will arrive before CBP issues further guidance and system updates, brokers must continue to follow current CBP directives in effect at the time of entry.
- Section 232 and Section 301 tariffs remain in effect, and Section 122 measures may operate alongside them. Some categories are expected to be excluded from Section 122 surcharges based on White House guidance, including certain critical sectors, USMCA‑qualifying goods, and goods already subject to Section 232 actions.
- If adjustments or refunds become available under Section 122, CBP will process them electronically through the ACE Portal. To avoid delays, importers should ensure that their ACE Portal account is active and that the ACH Refund Authorization form is completed by the Trade Account Owner.
John S. James Co. will continue to monitor Section 122 developments and provide updates as CBP releases guidance. Our team is available to assist with compliance and processing questions as these measures evolve. Visit our contact page.
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