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On 20 February 2026, the US Supreme Court ruled that President Trump could not use the International Emergency Economic Powers Act (IEEPA) to impose tariffs on countries around the world, including those impacting China, Canada, Mexico, and countries subject to reciprocal tariff actions. The Court acknowledged that its ruling may create significant practical consequences, including potential refunds of duties already collected, but it did not provide guidance on how such refunds would be administered. The decision can be found on the Supreme Court website.
Although the ruling invalidates certain IEEPA-based tariffs, the Trump Administration has indicated that it intends to rely on other statutory authorities, such as Sections 122 and 301 of the Trade Act of 1974. Sections 122 and 301 are separate trade authorities that may be used to impose tariffs under different legal frameworks. President Trump signed a Proclamation on the same day as the Supreme Court decision, imposing a temporary import duty of 10% for a period of 150 days, on articles imported into the US. The temporary import duty will take effect on 24 February 2026, and further details are available on the White House website.
Please note that the broader implications of these changes remain unclear, including potential impacts on the United States-Mexico-Canada Agreement (USMCA) and on countries that have concluded reciprocal trade arrangements with the US, such as the UK. CTPA will keep members updated when further detail is available.
