Tariffs in Flux: SCOTUS Overturns IEEPA Duties as New Tariffs Take Effect

On Friday, February 20, the Supreme Court of the United States (SCOTUS) overturned many of the tariffs added during President Trump’s second term (i.e., the IEEPA tariffs). Later that same day, President Trump enacted new 10% tariffs under a different statutory authority, Section 122 of the Trade Act of 1974. The new tariffs were increased from 10% to 15% on Saturday.

Tariffs under Section 122 can only be effective for 150 days. President Trump has already announced that he intends to replace the Section 122 tariffs with longer-lasting tariffs under Section 301 of the Trade Act. However, details of the Section 301 tariffs have not been announced, and the administration has not issued a schedule for the adoption of Section 301 tariffs. Studies related to Section 301 tariffs were initiated prior to the SCOTUS decision.

Will amounts previously paid under the IEEPA tariffs be refunded?

Through mid-December 2025, about $133.5 billion was collected from the IEEPA tariffs. SCOTUS did not resolve the issue of whether and to what extent previously paid IEEPA tariffs will be refunded. This issue will likely be resolved by lower courts. Hundreds of companies have already filed lawsuits, attempting to recover amounts paid. There are steps that potential claimants could take to maximize your rights to a refund. Now that the SCOTUS decision has been issued, all parties who previously paid IEEPA tariffs should at the very least monitor further developments regarding reimbursement procedures.

What will happen during the interim before new Section 301 tariffs go into effect?

Imports from some countries have lower tariffs under Section 122 than they had under the IEEPA tariffs. For example, tariffs on imports of Chinese products are much lower. We do not know whether the anticipated Section 301 tariffs will be higher than the IEEPA tariffs. However, this is likely to happen. Given this probability, we anticipate that Chinese imports may increase substantially over the short term.

What is the effect of the SCOTUS decision on Section 232 steel, aluminum, copper and related products?

The Section 232 tariffs were not challenged in the case brought before SCOTUS and are unaffected by the decision in that case. Most commentators think that the Section 232 tariffs are much less likely to be successfully challenged.

We will continue to monitor tariffs developments and support our clients who seek to understand how these developments affect the tariffs that they have incurred and will likely incur in the future. Tariff issues are deeply complex and detailed. Please let us know if you have any questions regarding how tariffs may apply to your business. We are happy to discuss whether a tariff management strategy could effectively reduce your tariffs.