Dear Valued Clients and Partners,
On February 20, 2026, the Supreme Court ruled 6-3 that President Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs was illegal, concluding he overstepped his authority. The decision invalidates key tariff hikes, finding IEEPA does not authorize the president to levy these duties. As a result, certain tariff increases applied to imports from multiple countries under IEEPA authority may be invalidated.
The case was brought by businesses challenging the legality of the tariffs and was expedited to the Supreme Court after lower courts in 2025 similarly determined that the measures exceeded presidential authority.
Refund Considerations
While the tariffs have been declared unlawful, refunds are not expected to be automatic. Importers may need to have taken specific procedural steps to preserve refund eligibility. Further clarification from U.S. Customs and Border Protection (CBP) is expected.
Next Steps
Our Brokerage Team is actively monitoring developments, including CBP guidance and procedural requirements related to liquidation, protests, and potential duty recovery. We will share updates as soon as additional information becomes available.
For questions related to your specific shipments or entries, please contact your Phoenix International representative.
Thank you!
