On February 20, 2026 the United States Supreme Court struck down the Trump Administration’s use of IEEPA Tariffs.
- The Supreme Court’s ruling does not rule on if or how tariffs which have already been collected will be refunded or not. Further litigation will likely determine this.
- At this time refunds have not been authorized and we have no further information on this yet.
- The ruling does not provide specific instructions to immediately cease collection of the tariffs.
- U.S. Customs issued CSMS# 67823350 advising they are working with other government agencies to fully examine the implications of the SCOTUS decision and will provide additional information and technical guidance for ACE filers as soon as it becomes available.
- U.S. Customs issued CSMS# 67834313 providing guidance ending collection of the IEEPA tariffs on February 24, 2026 at 12:00am Eastern Time.
What does this ruling not affect?
- This ruling does not affect tariffs imposed under different legal authorities such as Section 232 and 301 tariffs.
- Section 232 and 301 tariffs both require formal investigations that usually take several months to complete and implement. In general these tariffs have been upheld by the courts.
What happens next with tariffs?
- An official presidential proclamation was issued on February 20, 2026 imposing a 10% Global Tariff under Section 122. This tariff will be in effect as of February 24, 2026 at 12:01am Eastern Time. On February 21, Trump announced in a social media post he will further increase the Global Tariff rate to 15%. This rate may only be in effect for 150 days and any extension must be approved by the U.S. Congress.
- U.S. Customs CSMS# 67844987 was released in the hours before the new tariffs went into force advising the actual rate will only be 10% at the time of implementation. The additional 5% mentioned on Saturday has not yet been officially signed into force.
- Section 122 tariffs replace the former country specific tariff rates with a flat tariff rate for all countries. These tariffs are in addition to any applicable Section 232 or 301 tariffs, normal duty rates listed in the Harmonized Tariff Schedule, merchandise possessing fees for all imports, and harbor maintenance fees for ocean imports.
- As of this writing, refunds of the money collected under the unconstitutional IEEPA tariffs has not yet been authorized.
What is happening in the lower courts after the SCOTUS ruling?
- The Department of Justice responded to the U.S. Court of Appeals for the Federal Circuit (CAFC) on February 27 they are in no hurry to issue refunds and the plaintiff in the Supreme Court case will get its refunds plus interest, but they also are taking the stance the plaintiff cannot argue or procure relief for every other importer. It is clear the government plans to try to block or delay refunds as long as possible based on their responses.
- On Monday March 2 the CAFC granted the motion of the plaintiffs in the U.S. Supreme Court (SCOTUS) case for immediate issuance of the mandates in the SCOTUS ruling. This sends the matter back to the Court of International Trade (CIT) to begin proceedings to address the issues of relief, which will likely include refund of illegally collected IEEPA tariffs owed to affected importers.
- On March 4 the CIT ordered CBP to liquidate unliquidated import entries without regard to IEEPA duties and to reliquidate any entries that have been liquidated but are not yet final. This applies to all importers and not just those who have filed suit in the CIT.
- CBP told the CIT in a March 6 filing that it is no currently prepared to proceed court-ordered refunds of tariffs imposed under IEEPA but could have the Automated Commercial Environment programmed to do so within the next 45 days or so. CBP is working to reprogram ACE to pay importers a lump sum for all refunds and interest instead of processing 53 million separate entry-specific refunds.
- REGISTER FOR AN ACE ACCOUNT NOW! This is the only way you will be able to obtain a refunds from CBP once they proceed with issuing refunds: https://www.cbp.gov/trade/automated/how-to-use-ace/portal-applying
Potential Refunds
- 22 Senate Democrats have released legislation named the Tariff Refund Act of 2026 which would require CBP refund collected tariffs, even if those tariffs have been liquidated (finalized and closed) by CBP.
- Sets a deadline of 180 days after enactment for CBP to process all refunds.
- Requires CBP to pay interest on the refunded amount.
- Directs CBP to prioritize small businesses when paying refunds and to coordinate with the SBA to provide key information on the refund process to small businesses.
- Requires CBP to report every 30 days to relevant congressional committees on the status of refunds until CBP has completed the payment of all refunds.
- Directs CBP to issue guidance on how to address duty drawback claims.
More on the Tariff Refund Act of 2026 can be found on the Senate Finance Committee website at: https://www.finance.senate.gov/ranking-members-news/wyden-markey-shaheen-and-19-senate-democrats-release-legislation-requiring-refunds-of-trumps-illegal-tariffs
PREPARE NOW FOR POSSIBLE REFUNDS
Effective February 6, 2026, U.S. Customs moved to an all electronic refund system. They will no longer issue paper refund checks in the mail. It is important that all importers register for an ACE account so they may receive any possible refunds through the new refund system. IEEPA Tariff refunds are not yet certain, but a valid ACE account is required to receive any refunds if they are given out.
Please visit the U.S. Customs ACE Portal Page to apply: https://www.cbp.gov/trade/automated/how-to-use-ace/portal-applying
