US Tariff Update - Supreme Court invalidates IEEPA Tariffs
US Tariff Update - Supreme Court invalidates IEEPA Tariffs
What you need to know
- The U.S. Supreme Court ruled 6–3 that IEEPA does not authorize the President to impose tariffs, invalidating the 2025 ‘emergency’ country-specific tariff rates (country specific rates – blue billboards).
- Refunds are not automatic; recovery will depend on entry status, documentation, and US Customs and Border Protection guidance. The White House has announced that they it intends to litigate refund requests.
- Other tariff measures, like industry specific s232 tariffs - steel and aluminium - remain fully in force.
- A new 10% tariff under s122 came into effect from 24 February 2026. At the moment, it is unclear whether the previously negotiated Free Trade Agreements held by the UK and EU will eliminate this new tariff for UK and EU goods imported into the US. President Trump did advise that this new rate would increase to 15%, but no additional information on the increase is available yet.
Businesses can contact the BDO Customs team to review your duty exposure, preserve protest rights and optimise your US import model.
US Tariff turmoil continues
The US trade environment is in turmoil again following the decision by the US Supreme Court to rule that the country specific tariff rates (the famous ‘blue billboard’ rates) implemented by US President Donald Trump under the International Emergency Economic Powers Act (IEEPA) were invalid.
The Court held that while IEEPA allows the President to regulate certain economic transactions during a declared national emergency, but it does not extend to the imposition of import duties, and tariff action must instead rely on specific trade statutes enacted by Congress.
The decision closes off IEEPA as a tariff mechanism; however, tariffs for importers persist under other statutory measures.
We are already seeing how other tariff mechanisms can be used. Within minutes of the ruling, the President issued a new executive order imposing a 10% tariff from 24 February 2026 - which he advised would be increased to 15% - on most imports under Section 122 of the Trade Act of 1974. Section 122 permits tariffs of up to 15% and is not affected by the Court’s decision – although such tariffs must be confirmed by Congress within 150 days.
The existing tariff measures raised under the Trade Expansion Act Section 232 on the grounds of protecting national security, including steel, aluminium, are unaffected by the ruling and remain in place. It is possible that future sector-specific measures will be announced under Section 232 or Section 338 (Discrimination against US commerce) following US Treasury investigations - neither need to have an expiry date). Likewise, tariffs created under Section 301 (countering unfair trade practices), and statutory process and Safeguard measures under Section 201 remain effective (both types have a four-year time limit, but this can be extended). All tariffs under this Act can all be higher than 15%.
While the scope and duration of this collection of tariffs differ from the invalidated IEEPA regime tariffs, the President’s announcement signals that broad-based tariff measures will continue under alternative statutory measures. Ensuring you have the most optimised import model to weather the continuing US trade storm is essential.
How we can help
With potential refund opportunities emerging and alternative tariffs remaining in force, businesses should take a structured approach to recovery and risk mitigation. We can assist with:
- import data analytics to identify duties paid under IEEPA tariffs and assess recovery options
- protest and tariff refund strategy support
- tariff exposure screening – identify which other ongoing tariffs your imported goods are subject to like industry-specific and country–specific rates
- supply chain optimisation and restructuring planning.
Please speak to your BDO Customs, Excise & International Trade team
Juliet Wallwork, Director