Effective February 24, 2026, the United States will formally terminate all additional ad valorem tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This action follows a ruling by the U.S. Supreme Court that such tariffs were unconstitutional. Affected measures include the 10% "fentanyl tariff" and 10% "reciprocal tariff" on Chinese goods, as well as related IEEPA tariffs targeting Brazil, Russia, Venezuela, and others. U.S. Customs and Border Protection (CBP) had previously issued an official notice confirming this effective date.
This termination applies **exclusively** to measures under the IEEPA framework. U.S. tariffs under Section 232 (on steel, aluminum, copper, automobiles, and auto parts) and Section 301 (on Chinese goods, with rates ranging from 7.5% to 100%) remain in effect. These two sets of measures cover 30% of all U.S. imports. CBP will also update its systems to invalidate the Harmonized Tariff Schedule (HTSUS) codes associated with the now-terminated IEEPA tariffs. Notably, the unconstitutional "fentanyl tariff" and "reciprocal tariff" on China were implemented in February and April 2025, respectively. The Wharton School of the University of Pennsylvania estimates the total potential refunds from these tariffs exceed $175 billion.
The Supreme Court did not directly rule on whether the collected tariffs should be refunded; this authority rests with the U.S. Court of International Trade (CIT). The CIT had previously affirmed its jurisdiction to order retroactive refunds even for duties that had been liquidated. However, CBP did not address specific refund procedures in its announcement. Industry experts estimate that clarifying the refund mechanism could take months, if not years. Former President Trump has publicly opposed refunds, stating that related litigation could last up to five years, further clouding the outlook for tariff repayments.
Professional bodies advise affected businesses to take immediate action to protect their refund rights:
1. File a protest with CBP within 180 days of liquidation to preserve claims, as failure to meet this deadline may result in forfeiture of refund rights.
2. Initiate legal action in the CIT, currently the most effective recourse. Over 1,000 such refund cases have been filed domestically, and the political threshold for litigation has decreased.
3. Compile comprehensive import declaration records and tariff payment documentation to accurately quantify duties paid and support claims.
Concurrently, on February 20, the Trump administration announced new tariff measures under Section 122 of the Trade Act of 1974. Initially planned at 10%, the proposed global tariff was subsequently raised to 15%. Industry analysts anticipate that the U.S. will likely pursue more targeted, sector-specific tariffs to maintain overall tariff levels, keeping the international trade landscape uncertain in the short term. Businesses must also evaluate the cost implications of these new tariffs and prepare to address customer demands for price reductions stemming from the termination of IEEPA tariffs.
