The Supreme Court decision from February 20, 2026, invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has introduced a new layer of uncertainty for global trade. Tariffs directly influence sourcing decisions, pricing, and supply chain strategy, so any material shift in tariff authority or refund eligibility carries real commercial implications for importers, brokers, and logistics providers.
Key Takeaways
- Duty refunds are possible, but the “how and when” is still unclear—companies should prepare for a gradual process and keep entry data/documentation audit-ready.
- Near-term duty planning remains fluid: IEEPA tariffs are collected until 12:01am EST Feb 24, 2026, then a new 10% Section 122 duty (with exemptions) applies for 150 days.
- Policy volatility continues even after IEEPA—Section 232/301 remain available, and the operational priority is quantifying exposure, preserving rights, and scaling corrections (e.g., Post Summary Corrections) efficiently.
At a high level, the decision removes the legal basis for IEEPA tariffs and potentially paves the way for duty refunds but does not yet provide operational clarity on how the unwinding of those tariffs will occur. As a result, companies across the trade ecosystem are focused on three immediate questions.
First, will IEEPA tariffs already paid be refunded?
The potential financial impact for importers is significant, but the process and timing remain unclear. There is currently no confirmed administrative mechanism or timeline for refunds, and it is likely that resolution will take time and may involve further guidance from U.S. Customs and Border Protection (CBP) and the courts. Companies should plan for a gradual, rather than immediate, path to any potential recovery.
Second, how will duty planning and pricing assumptions change going forward?
This is also uncertain. While the Court’s decision invalidates the legal basis for IEEPA tariffs, they will still be collected until 12:01am EST on February 24, 2026.
Third, what—if anything—might replace IEEPA tariffs in the short to medium term?
The ruling does not eliminate the broader use of tariffs as a policy tool. In fact, as of 12:01am EST on February 24, 2026, a new 15% duty rate will be applied, with certain exemptions, on all articles imported into the United States. This rate is applied under Section 122 of the Trade Act and will remain in effect for 150 days.
Other mechanisms, including Section 232 and Section 301 tariffs, remain fully in force and available to policymakers, though they are more structured and typically take longer to implement or modify. This means companies should expect continued trade policy volatility even as the legal foundation for certain tariffs changes.
For U.S. importers, customs brokers, and freight forwarders, the key priority now is understanding financial exposure and operational implications. Businesses operate on landed cost and supply chain reality, not speculation, and will be focused on assessing how this decision affects pricing, sourcing, and compliance strategies in the days ahead.
We are closely monitoring developments and stand ready to support customers and partners as more guidance emerges. As always, Descartes’ priority is helping importers, brokers, and logistics providers maintain visibility into their tariff exposure and navigate regulatory change with confidence.
How Descartes Can Help
In the short term, companies should be quantifying their exposure – understanding how much duty they paid under the IEEPA tariffs and ensuring their entry data and documentation are in order.
Descartes is proactively updating its tariff rate and duty calculation modules to reflect the latest tariff structure and ensure accurate duty assessments, classification management, and compliance reporting. Our platform continues to incorporate real-time Harmonized Tariff Schedule (HTS) data, duty rule logic, and tariff prioritization to help clients calculate and apply the new duty rate correctly across their import portfolios
In preparation for refund process clarification, our Duty Recovery and Drawback services team can help you map and quantify the financial impacts of IEEPA on your import activities. We can also help review entry and protest status to ensure that any available rights are preserved while the refund process becomes clearer. Duty drawback software is available for customs brokers and importers.
It is anticipated that the elimination of the IEEPA tariffs with lead to an increase in the volume of Post Summary Corrections (PSC) being filed by customs brokers and self-importers. Descartes’ customs and regulatory compliance suite includes industry leading PSC automation and filing tools designed to help self-filers and licensed customs brokers efficiently prepare and submit CBP PSC filings at scale. These capabilities are particularly critical now as importers assess entries subject to the recently invalidated tariff assessments and want to act quickly to correct unliquidated entry summaries prior to liquidation in order to preserve potential refund rights.
Enabling accurate tariff management and compliance along with PSC creation, validation, and submission through the Descartes Global Logistics Network™ (GLN) and ACE-formatted uploads, Descartes enables clients to manage large volumes of corrections with greater precision, reduced manual overhead, and improved compliance. This level of automation helps ensure that trade partners can respond rapidly to policy shifts without sacrificing accuracy or audit readiness.
Coupled with our ongoing compliance alerts, regulatory monitoring, and expert support services, this technology ensures that importers and brokers remain fully compliant with U.S. CBP requirements as the tariff rate change takes effect.
Director, Industry Strategy, Global Trade Intelligence, Descartes
