Dear Valued Clients and Partners,
Phoenix International is closely monitoring developments following the U.S. Supreme Court’s 6–3 ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose these tariffs.
Below is what importers need to know and what to do next.
What Has Changed
Effective February 24, 2026:
- Tariffs imposed solely under IEEPA authority can no longer be collected.
- U.S. Customs and Border Protection (CBP) will cease collection of those specific duties.
This decision applies only to IEEPA-based tariffs.
What Has NOT Changed
Tariffs under other statutory authorities remain fully in effect, including:
- Section 232 (steel, aluminum, certain autos and metals)
- Section 301 (Chinese-origin goods)
- Section 201 safeguard measures
- Other trade remedy programs
Importers should continue to comply with these active programs.
Refund Status: Not Automatic
While IEEPA tariffs have been ruled unlawful, refunds are not immediate and not automatic.
Key considerations:
- The U.S. Court of International Trade (CIT) must determine implementation procedures.
- CBP cannot issue refunds without legal direction.
- Refund eligibility processing may depend on entry status (unliquidated vs. liquidated).
- Protest and post-summary correction deadlines still apply.
At this time, no official refund process or timeline has been issued.
Recommended Actions for Importers
Phoenix recommends the following proactive steps:
1️⃣ Identify Impacted Entries
Map all entries where duties were paid under IEEPA authority.
2️⃣ Review Entry Status
Determine whether entries are unliquidated and eligible for post-summary correction (PSC).
3️⃣ Protect Your Legal Standing
Monitor protest deadlines (generally 180 days from liquidation). Consider consultation with customs counsel.
4️⃣ Review Commercial Agreements
Assess supplier contracts and cost-pass-through clauses to clarify refund allocation rights.
What to Expect Next
Although the Court ruling provides legal clarity on IEEPA, broader trade policy uncertainty remains. Alternative tariff authorities remain available to policymakers and further legal activity is expected.
Importers should prepare for continued tariff volatility through 2026.
How Phoenix Can Support You
Phoenix International’s Customs and Trade Compliance team is:
- Monitoring all regulatory developments in real time
- Reviewing impacted entries upon request
- Coordinating with customs counsel where appropriate
- Advising on PSC filings and protest strategy
- Supporting documentation and audit preparation
If you would like a review of your exposure or entry status, please contact your Phoenix representative.
We will continue to monitor developments and provide updates as needed.
Thank you!
