Following the Supreme Court's February 20, 2026, decision that ruled President Donald Trump's "reciprocal" tariffs illegal, US importers are still facing substantial duties on goods entering the country.This situation persists because US Customs and Border Protection (CBP) has not yet updated its Cargo System Management Service to remove the tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
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cnbc.comThe Supreme Court found that Trump overstepped his authority in imposing these tariffs, stating that the IEEPA does not grant him the power to unilaterally levy such taxes.The court ruled in a 6-3 decision that Trump's actions exceeded the legal boundaries set by the Act, emphasizing that Congress must clearly authorize such significant financial measures.
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taxfoundation.orgcnn.comHowever, the ruling did not address what should happen to the more than $134 billion already collected from these tariffs, leaving a cloud of uncertainty over potential refunds for importers.
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cnn.comCBP issued a bulletin following the ruling, indicating that they are collaborating with other government agencies to understand the implications of the Supreme Court's decision.They have yet to provide guidance on how to process entries without the IEEPA tariffs, which means importers must continue reporting these tariffs on their entries to facilitate the movement of goods.
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cnbc.comAn estimated 211,000 containers, valued at around $8.2 billion, entered US ports between the ruling and the subsequent weekend.Importers have a 10-day window to pay the tariffs, which means many are still grappling with the financial implications of these duties during this transitional period.As Lori Mullins, director of operations at Rogers & Brown Custom Brokers, explained, the system requires importers to report IEEPA tariff codes to release their goods, leaving them in a complex situation as they await further updates from Customs.
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cnbc.comThe uncertainty regarding the refunds is significant.The Supreme Court remanded the case to the United States Court of International Trade (CIT), which will need to decide how to handle the refunds for the tariffs that have already been collected.The CIT's decision will be crucial, as the potential for widespread refunds could significantly impact the federal revenue generated from these tariffs, estimated at over $160 billion since their implementation.
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taxfoundation.orgnpr.orgImporters are particularly concerned about the logistical challenges of claiming refunds, with Kuehne + Nagel advising clients to ensure all customs documents are accurate and complete.They noted that high volumes of claims could lead to delays in the refund process, potentially creating years-long backlogs.
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cnbc.comMichael Lowell, a partner at Reed Smith, emphasized that the backlog and corrections necessary due to the Supreme Court's ruling will likely take time to process.He suggested that importers would need to file post-summary corrections to remove the tariffs once Customs updates its systems, but the enormity of this task could lead to further delays.
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cnbc.comIn the broader economic context, the tariffs have already contributed to rising consumer prices and inflation, with average import tariffs soaring from 2.4% before Trump's presidency to nearly 18% currently.Many economists argue that while the tariffs were intended to protect domestic industries, they have instead raised costs for consumers and disrupted supply chains without significantly boosting domestic manufacturing jobs.
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npr.orgThis situation highlights the complexities surrounding executive power in trade policy and the significant economic implications for both importers and consumers.As the CBP navigates the aftermath of the Supreme Court ruling and addresses the logistical challenges of refunding billions in tariffs, US businesses are left to cope with the immediate financial burdens still imposed by these now-illegal tariffs.The coming weeks will be pivotal for importers as they await clearer guidance from Customs and the CIT's decisions on refunds, all while the potential for new tariff measures looms under the Trump administration's other trade powers, such as Section 232 and Section 301 tariffs.
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taxfoundation.orgscotusblog.comFor now, US importers continue to bear the financial brunt of policies that have been deemed unconstitutional, a situation that underscores the significant interplay between legal authority and economic reality in the realm of international trade.
