Supreme Court Strikes Down 2025 Tariffs: What Changes for Importers Today

We have heard from a number of clients over the past few days asking for clarity on the rapidly changing tariff landscape. Here is what we know as of today, February 24, 2026.

1. The Supreme Court struck down the 2025 IEEPA tariffs.
On February 20, 2026, the U.S. Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act of 1977 (IEEPA) does not authorize the President to impose tariffs. The ruling invalidated both the "fentanyl" tariffs (imposed on China, Canada, and Mexico beginning February 2025) and the "Liberation Day" reciprocal tariffs announced April 2, 2025, which ranged from 10% to 50% depending on the country. Chief Justice John Roberts wrote for the majority that IEEPA's authority to "regulate importation" does not constitute a clear delegation of tariff power, which the Constitution assigns to Congress.

2. The Administration responded within hours with a 10% tariff under a different law.
President Trump signed an executive order on Friday, February 20 imposing a 10% global tariff under Section 122 of the Trade Act of 1974. On Saturday, February 22, via Truth Social, he announced he was raising that rate to 15%, the statutory maximum under Section 122. However, when the new tariff took effect at 12:01 a.m. EST on Tuesday, February 24, it did so at the original 10% rate. The White House offered no public explanation for the discrepancy, and Trump's trade representative indicated 15% remains the target for certain countries going forward.

3. All pre-2025 tariffs are still in place.
The Supreme Court ruling only affects tariffs imposed under IEEPA. Section 232 tariffs (Trade Expansion Act of 1962) on steel, aluminum, autos, and other products remain fully in effect. Section 301 tariffs (Trade Act of 1974) on Chinese goods, including the various lists imposed during the first Trump Administration, are also unaffected. If you were importing from China prior to 2025 and paying a 20% effective tariff rate under Section 301, that rate is still in effect.

4. The new Section 122 tariffs are temporary: 150 days, expiring July 24, 2026.
Section 122 of the Trade Act of 1974 is a balance-of-payments authority that allows the President to impose tariffs of up to 15% for no more than 150 days. After that window, Congress would need to pass legislation to make them permanent. The Administration has made clear it views Section 122 as a bridge and not an endpoint.

5. Treasury Secretary Bessent: the goal is to get back to 2025 tariff levels using Section 232 and Section 301.
Speaking on CNN on February 22, Treasury Secretary Scott Bessent stated the Administration's objective is to use the 150-day window to conduct the investigations required under Section 232 (Trade Expansion Act of 1962) and Section 301 (Trade Act of 1974) to re-impose tariffs at comparable levels. "It is very likely that those studies will result in higher 232s, higher 301s, and it will get us back to the same tariff level," Bessent said. The U.S. Trade Representative has already been directed to open new Section 301 investigations against most major trading partners.

The bottom line for importers today.
The practical impact depends on where you source. For China importers, the IEEPA tariffs added roughly 20% to 25% on top of pre-existing Section 301 rates. If you were running at a combined rate of around 45% (a 20% to 25% Section 301 base plus the IEEPA add-on), you are now looking at approximately 35% to 40%: your same Section 301 base plus the new 10% Section 122 surcharge, replacing the higher IEEPA add-on. That is a meaningful improvement, but it is likely temporary.

For importers sourcing from countries with no pre-existing tariffs, like the UK, the picture runs the other direction. Under IEEPA, UK goods faced a 10% tariff. The new Section 122 tariff also came in at 10%, so the effective rate is unchanged for now. However, the Administration has signaled it intends to push certain trading partners toward 15%.

We do not believe the China reduction is permanent. The Administration has made clear it intends to use the next 150 days to build the legal framework under Section 232 (Trade Expansion Act of 1962) and Section 301 (Trade Act of 1974) to restore tariffs to prior levels. Both authorities require formal investigations, evidentiary findings, and public comment periods. That process takes time, and both rest on far stronger legal footing than IEEPA ever did. Section 301 alone has withstood more than 4,000 legal challenges since the first Trump Administration.

We are monitoring this closely and will update clients as the picture develops. If you have questions about your specific product categories, sourcing countries, or import strategy, reach out. We are happy to walk through the implications for your business.

Updated March 1, 2026

What has changed since February 24.
As of March 1, the 10% Section 122 tariff remains in place with roughly 144 days left on the clock, expiring approximately July 24, 2026. Several significant developments have occurred in the week since our original post.

Refund lawsuits are piling up fast. More than 1,000 companies have already filed suit in U.S. courts seeking refunds on the estimated $133 billion to $160 billion collected under the now-illegal IEEPA tariffs. High-profile filers include FedEx and Costco. Legal experts expect most importers will prevail, but the process is expected to take years and will be significantly more difficult for smaller firms without dedicated trade counsel.

China tariffs are staying elevated through other means. U.S. Trade Representative Jamieson Greer confirmed the Administration intends to maintain tariffs on Chinese goods at 35% to 50% using Section 232 and Section 301 authorities. Greer stated the U.S. does not intend to escalate beyond those levels ahead of Trump's planned trip to China beginning March 31. For brands sourcing from China, the practical impact is that relief from the IEEPA removal is modest and likely short-lived.

New Section 301 investigations are underway. The Administration has directed the U.S. Trade Representative to open new Section 301 investigations against most major trading partners. These investigations, which require public comment periods and formal findings, are the mechanism the Administration intends to use to restore tariff levels after the 150-day window closes. Section 301 rests on substantially stronger legal footing than IEEPA and has survived thousands of legal challenges since Trump's first term.

What brands should be doing right now. The 150-day window is not a reprieve. It is a planning window. If you source from China, your effective rate has come down modestly but the Administration has been explicit that it intends to restore prior levels before July 24. If you source from countries with no prior U.S. tariff exposure, 10% is your new baseline. Use this window to model your landed costs under multiple scenarios, stress-test your margins at 15% and 25%, and evaluate whether your sourcing mix still makes sense. Waiting for certainty is not a strategy here.