Tariff Decision Implications 2-23-26

Key Aspects of the Struck-Down IEEPA Regime (2025-2026): 

Reciprocal Tariffs (10%–25%+): Initially aimed at all countries to offset trade deficits, later adjusted to 15% for various countries including the DRC and Equatorial Guinea.

Canada/Mexico/China Focus: Included 25% tariffs on Canadian/Mexican goods (due to illegal drug influx) and specific, often higher, duties on Chinese goods.

Sector-Specific Increases: Effective Oct 14, 2025, to Jan 1, 2026,, tariffs were set for specific items: Softwood timber/lumber (+10% rising to 30%), upholstered wooden products (+25% rising to 50%), and kitchen cabinets (+25%).

Energy Imports: A 10% tariff was applied to Canadian energy imports, including crude oil, natural gas, and coal.

Legal Status: Following court rulings, importers have been seeking refunds, as the legal basis for these specific IEEPA-based tariffs was deemed invalid. 

As of February 20, 2026, the U.S. Supreme Court ruled in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Consequently, all tariffs previously enacted under IEEPA authority have been invalidated and terminated. 

Trade Compliance Resource Hub +4

While the IEEPA-specific tariff list is no longer in effect, the administration immediately transitioned to alternative legal authorities. 

Status of Major Tariff Programs (Post-Feb 20, 2026)

Active

Section 122  A 10% dury on most imports took effect 2-24-26 for 150 day period.

Section 232  Tariffs on steel, aluminum and automobiles remain at 25%.

Section 301 Existing tariffs on Chinese goods remain in full effect.

Summary of Terminated IEEPA Tariffs

Before being struck down, the IEEPA regime included the following primary measures that are no longer active: 

Reciprocal Tariffs: A baseline 10% duty applied to most trading partners, with higher rates for specific countries.

Trafficking & Immigration Tariffs: High-rate duties targeting imports from China, Mexico, and Canada intended to address fentanyl and border security.

De Minimis Change: IEEPA was used to suspend duty-free treatment for low-value imports; however, a new February 20, 2026 Executive Order has re-established this suspension under separate authority. 

Trade Compliance Resource Hub +4

New Replacement: Section 122 Surcharge 

Following the court ruling, a 10% surcharge was imposed under Section 122 of the Trade Act of 1974. This applies to most imports starting February 24, 2026, with notable exemptions for: 

USMCA-compliant goods from Canada and Mexico (commercial shipments).

Critical sectors: Pharmaceuticals, certain electronics, energy products, and specific agricultural goods. 

O'Melveny +2

Importer Refunds

The Supreme Court remanded the issue of refunds for the estimated $160 billion in IEEPA duties already collected back to the U.S. Court of International Trade. Importers may be eligible for refunds, though U.S. Customs and Border Protection (CBP) guidance on the process is currently pending. 

https://www.google.com/search?sca_esv=3c5cf73ee52ef95e&q=IEEPA

Norb Leahy, Dunwoody GA Tea Party Leader