Tariff Wars: The Supreme Court Strikes Back

Tariff Wars: The Supreme Court Strikes Back

In a 6–3 ruling, the Supreme Court determined that President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded executive authority. U.S. Customs and Border Protection (CBP) has since issued guidance discontinuing the collection of those IEEPA-based tariffs.

But the next phase is far less defined.

With an estimated $130 billion in duties potentially affected, the process for claiming refunds, and the requirements for doing so, remains unclear.

The response from the White House was immediate.

President Trump announced a new 10% global tariff under Section 122 of the Trade Act of 1974 to replace the struck-down measures, framed as a temporary import surcharge. He has since threatened on social media to raise that rate to 15%, but no official documentation has been issued to implement an increase. As of now, the operative, formally documented measure remains the 10% surcharge.

Certain products are expected to be exempt under the Section 122 levy, including critical minerals, metals, and pharmaceuticals.

Additionally, despite the discontinuation of IEEPA tariffs, the United States will continue suspending duty-free de minimis treatment for shipments valued at $800 or less, following prior certification that infrastructure exists to collect duties on low-value shipments.

For U.S. importers, operational vigilance is essential. Companies should ensure they are registered in the Automated Commercial Environment (ACE) portal and that their financial institution details are updated to support potential electronic refunds if CBP issues refund guidance.

Read our guide to setting up ACE for electronic-only CBP refunds and adding your financial institution details.