NOTE: This is an extremely fast-moving situation. We recommend daily monitoring and close coordination with trade counsel this week.
According to news reports, CBP said it will stop all collection of IEEPA tariffs as of 12:01 a.m. EST on Tuesday, Feb. 24. The agency said it will deactivate all tariff codes associated with Trump’s IEEPA-related orders as of Tuesday.
For ISEA members: If you have shipments arriving Tuesday or later, IEEPA tariffs will no longer be collected at the border.
What Replaces IEEPA: The New 15% Section 122 Tariff
- On February 21, President Trump issued a Proclamation under Section 122 of the Trade Act of 1974 imposing a 10% global tariffs, which he quickly increased to 15%, effective February 24, 2026. 15% is the maximum allowed under Section 122 — for all countries.
- The Section 122 tariff runs until July 24, 2026, unless modified, terminated, or extended by Congress.
- The 15% tariff does NOT apply to USMCA-qualifying goods from Canada and Mexico, or certain other previously exempted categories.
- The 15% tariff does NOT apply to goods subject to Section 232 tariffs – HOWEVER, the Commerce Department, in Sept., 2025, conducted as Sec. 232 investigation related to medical PPE, and products needed for robotics, which could result in tariffs.
- Net effect imports from Asia: You are going from very high IEEPA rates (which varied by country) to a 15% Section 122 tariff, stacked on top of any existing Section 301 tariffs on good imported from China. See below for more.
- Sadly, the US is in for more tariff instability.
What Tariffs Remain in Place
- Section 301 tariffs on Chinese PPE remain fully in effect. These include elevated rates on respirators, gloves, and other safety equipment — many of which increased in 2026 under the Biden-era schedule.
- Section 232 tariffs on steel and aluminum remain in place, which were put in place to boost US production of these metals.
- Section 232 and Section 301 tariffs are not currently subject to legal challenge, and where challenged in the past, have been upheld.
- Section 232 PPE investigation – ongoing. The Department of Commerce launched a national security investigation of PPE last September, as noted above. Results could bring new, sector-specific PPE tariffs as early as spring 2026 — potentially replacing the temporary Section 122 rate with something higher and permanent.
Refunds! Here is what we know:
The bottom line: Refunds are legally owed, but there is no automatic or easy process yet.
- There are estimates that up to $175 billion in IEEPA tariff refunds are owed. The Supreme Court decision does not explicitly order immediate refunds, but it has opened the door to refund claims.
- The administration stipulated on January 8, 2026 — before the ruling — that it would refund IEEPA tariffs for all current and future similarly situated plaintiffs following a “final and unappealable decision” ordering refunds. That commitment is now on record.
- Neither the Supreme Court’s opinion nor the order revoking the IEEPA tariffs addressed refunds. The issue has been left to renewed proceedings before the U.S. Court of International Trade (CIT).
- The most likely outcome is court-directed reliquidation, under which CBP recalculates duties owed and issues refunds, typically with interest. Importers should avoid assuming which mechanism will apply and be prepared to pivot once CIT and CBP provide direction. It will be messy. Companies will likely be paying new tariffs while seeking refunds from prior tariffs.
What Members Should Do Right Now
Consult trade counsel immediately if you paid significant IEEPA tariffs. The 180-day protest window is running on liquidated entries.
Consider filing a protective action at the CIT if you have not already. Importers who filed early protective CIT actions may be better positioned to receive refunds than those who wait.
Document everything. Track all IEEPA tariff payments by entry, by date, and by country of origin. This documentation will be essential for any refund claim.
Review your contracts and supply agreements to understand whether tariff costs were passed through — which may affect whether you or your customers are ultimately entitled to refunds.
What to Watch This Week
- CIT is expected to lift its stay (issued on Dec. 23) on pending IEEPA refund cases and issue implementation guidance now that the Supreme Court has ruled.
- The administration may announce Section 301 and Section 232 investigations targeting goods that were previously covered by IEEPA tariffs.
- Congress may attempt to legislate on tariff authority — though this is uncertain given current political dynamics.
- Watch for CBP guidance on the refund/reliquidation process.
