On February 20, 2026, just hours after the Supreme Court of the United States invalidated the International Emergency Economic Powers Act (“IEEPA”) tariffs that had been in effect since February 2025, the White House issued three executive orders (“EOs”) that significantly reshape the current U.S. tariff landscape. We overview them as follows.
1. “Ending Certain Tariff Actions”
This EO formally terminates the IEEPA tariffs in response to the Supreme Court’s ruling. However, it preserves the suspension of duty-free de minimis treatment. The order directs agencies to end the IEEPA tariffs “as soon as practicable,” leaving no fixed date for when U.S. Customs and Border Protection (“CBP”) will stop collecting them.
2. “Imposing a Temporary Import Surcharge”
This EO imposes a global 10% tariff on all imports from all countries under Section 122 of the Trade Act of 1974 (“Section 122”). The surcharge replaces the IEEPA tariffs and applies for 150 days.
3. “Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries”
This EO maintains the suspension of duty-free de minimis treatment worldwide. It effectively transfers the policy from the prior IEEPA authority to the new Section 122 tariff framework.
Scope of the Changes are the following.
-Termination of IEEPA Tariffs
All IEEPA-based ad valorem tariffs are ordered to cease, including:
- IEEPA Trafficking (“IEEPA Fentanyl”) tariffs on Canada, Mexico, and China
- IEEPA Reciprocal Tariffs
- Escalating (or “secondary”) tariffs on Brazil, India, Cuba, and Iran
The EO preserves other IEEPA actions that do not impose ad valorem duties, leaving open the possibility of future non-tariff measures under IEEPA.
-Implementation of Section 122 Tariffs
- A 10% tariff applies to all goods imported into the United States from all countries.
- Effective at 12:01 a.m. on February 24, 2026.
- Remains in effect for 150 days, through July 24, 2026.
- Includes a limited in-transit exception.
- Goods admitted to a foreign trade zone must be entered in privileged foreign status.
- Refunds are not automatic absent guidance from CBP or the courts.
-Exemptions
Section 122 tariffs do not apply to products listed in Annexes I and II to the proclamation. These exemptions mirror those previously available under the IEEPA tariffs.
Exempt categories include:
- Certain critical minerals
- Energy and energy products
- Natural resources and fertilizers not available in sufficient U.S. supply
- Certain agricultural products
- Pharmaceuticals and pharmaceutical ingredients
- Certain electronics
- Passenger vehicles, certain light trucks, medium- and heavy-duty vehicles, buses, and certain parts
- Certain aerospace products
- Textile and apparel articles eligible for duty-free treatment under DR-CAFTA
-In-Transit Exception
Goods:
- Loaded onto a vessel at the port of loading and in transit on the final mode of transport before entry into the United States prior to 12:01 a.m. on February 24, 2026; and
- Entered before 12:01 a.m. on February 28, 2026
are exempt from Section 122 tariffs.
-Practical Effective Dates
- The EO terminating IEEPA tariffs is effective immediately.
- Agencies, primarily CBP, must act “as soon as practicable.”
- Until CBP issues formal CSMS guidance instructing importers to cease payment, IEEPA tariffs must continue to be paid.
- Refusal to pay duties before official guidance may expose importers to liquidated damages or denial of entry.
- IEEPA tariffs paid during this interim period must follow standard refund procedures.
-Stacking Guidance
Section 122 tariffs stack on top of other applicable duties, including:
- Normal MFN (Column 1) duties
- Section 301 tariffs
- Antidumping and countervailing duties
Section 122 tariffs generally do not stack with existing Section 232 tariffs. However, for Section 232 steel, aluminum, and copper tariffs requiring metal and non-metal content valuation, Section 122 applies to the non-metal content.
-HTSUS Classification
Imports subject to Section 122 tariffs must be declared under new HTSUS subheading 9903.03.01. Subheadings 9903.03.02 through 9903.03.11 are designated for various exemptions.
-What are the next Steps for Importers?
- Continue paying IEEPA tariffs until CBP formally instructs otherwise.
- Begin paying Section 122 tariffs at 12:01 a.m. on February 24, 2026.
- Monitor developments regarding the refund process following the Supreme Court ruling.
-What about refund and litigation options?
Importers should evaluate their strategy based on individual circumstances:
- Monitor liquidation deadlines using ACE reports. Consider filing protests if entries approach the 180-day post-liquidation deadline. The United States Court of International Trade (“CIT”) has indicated protests may not be required, but consultation with counsel is advised.
- File complaints at the CIT. There is debate as to whether relief applies broadly or only to named plaintiffs. The CIT did not resolve this issue in its May 2025 or December 15, 2025 IEEPA decisions. The statute of limitations generally extends to the later of:
- Two years after the institution of IEEPA tariffs; or
- Two years from the date of entry of the affected merchandise.
- Consider post-summary corrections (PSCs). Only brokers and self-filers may file PSCs, and they are not suitable for submissions involving legal argument.
Ensure ACH information is current, as refunds will be processed through the Automated Clearing House system.