Overview
There have been significant developments in U.S. import tariff policy that may affect cross-border shipments. Recent events have created uncertainty regarding how duties will be applied moving forward.
What Happened
A recent U.S. Supreme Court decision struck down certain tariffs that had been imposed under the International Emergency Economic Powers Act (IEEPA). Shortly afterward, the U.S. government issued executive actions establishing replacement tariff measures under a different legal authority.
Key Elements of the Current Situation
1. IEEPA Tariffs Terminated
The Supreme Court ruled that IEEPA did not authorize the imposition of tariffs. As a result, duties previously imposed under that authority are being terminated, and associated tariff codes are expected to be deactivated.
2. New Tariff Authority Under Section 122
The administration has invoked Section 122 of the Trade Act of 1974 as the legal basis for a temporary import surcharge. This statute permits the President to impose a temporary ad valorem duty of up to 15 percent for a period of up to 150 days.
Announced measure: Rate 10 percent, effective February 24, 2026, for up to 150 days unless modified.
Referenced exclusions include certain critical minerals, pharmaceuticals, electronics, and USMCA-qualified goods.
3. De Minimis Duty-Free Threshold Remains Suspended
Duty-free treatment for low-value imports, commonly referred to as de minimis, remains suspended for all shipments regardless of value, country of origin, or transportation mode. This may impact courier shipments and e-commerce flows.
4. Other Tariff Authorities Remain in Effect
Tariffs imposed under other legal authorities remain unchanged, including Section 232 national security tariffs and Section 301 trade practice tariffs. These duties continue to apply where relevant.
What Is Still Uncertain
U.S. Customs and Border Protection (CBP) has not yet issued full implementation guidance for the Section 122 surcharge. Outstanding items include Chapter 99 reporting codes, scope of exclusions, entry filing mechanics, treatment of in-transit shipments, and confirmation of how duties will appear on entry summaries. Until CBP guidance is released, transitional periods may occur where duty application varies.
Refunds & Previously Collected Duties
One of the most common questions relates to duties previously collected under the overturned IEEPA authority. At this time there is no official confirmation regarding automatic refunds, it is unclear whether liquidated entries will be reprocessed, and CBP has not issued formal instructions on refund procedures. Importers should not assume refunds will occur automatically. We recommend retaining all entry documentation and monitoring official updates. Clarification will be provided once CBP releases formal direction.
What This Means for Shippers
Importers should expect potential additional duties beginning February 24, 2026. Final operational details may evolve once CBP guidance is released. Recommended actions include verifying HTS classifications, confirming country of origin status, reviewing USMCA qualification where applicable, and continuing compliance with Section 232 and Section 301 obligations.
Next Steps
Until additional information becomes available, we recommend reviewing HTS classifications and ensuring documentation is accurate and complete, confirming origin qualification where applicable (CUSMA/USMCA) and attaching supporting documentation at shipment creation, and monitoring official announcements from CBP and the White House at https://www.whitehouse.gov/presidential-actions/executive-orders/. We will continue monitoring developments and provide updates as operational details are confirmed. This update reflects information available as of February 23, 2026. Trade policy and customs implementation guidance remain subject to change.
Frequently Asked Questions (FAQ)
Q: When does the 10 percent tariff take effect?
A: The announced effective date is February 24, 2026, at 12:01 a.m. ET. Operational implementation may depend on CBP guidance, which has not yet been fully released.
Q: Will this apply to all shipments?
A: The surcharge has been described as broad in scope, but exclusions have been referenced. Final applicability will depend on official CBP instructions and Annex details once published.
Q: Does this replace existing tariffs such as Section 301 or 232?
A: No. Section 301 and Section 232 duties remain in effect where applicable. The Section 122 surcharge would apply in addition to existing duties unless otherwise specified.
Q: What happens to duties already paid under the overturned IEEPA tariffs?
A: There is currently no official confirmation regarding automatic refunds or reprocessing of previously paid duties. Importers should not assume refunds will occur unless CBP provides formal guidance.
Q: Will this affect courier shipments or ecommerce?
A: Yes. If the de minimis suspension remains in effect, low-value shipments may continue to be subject to duty assessment.