IEEPA Tariffs Repealed: What This Means for the Security Industry

On Feb. 20, 2026, the Supreme Court held in a vote of 6–3 that the president cannot use the International Emergency Economic Powers Act (IEEPA) to unilaterally impose tariffs without congressional approval, effectively striking down a wide swath of country-specific tariffs that have been imposed by the Trump administration using that justification.

As of the ruling, all IEEPA-based tariffs were immediately halted. The Trump administration had used this act as the basis for nearly all country-specific tariffs imposed since February 2025. This includes the Canada and Mexico tariffs, some additional duties placed on China and all of the Liberation Day “reciprocal tariffs” of 10% across the world with higher rates for some specific countries.

This ruling did not overturn the tariffs imposed by the Trump administration under other statutory authorities, notably the product-specific tariffs imposed on steel, aluminum, copper and semiconductors that have been imposed using Section 232 of the Trade Expansion Act of 1962. Tariffs imposed under Section 301 of the same act also remain in place, affecting some rates on imports from China, Nicaragua and potentially Korea and Brazil (the U.S. Trade Representative has active Section 301 investigations against the latter two countries).

Reaction From Industry and the Process for Refunds

Immediately following the ruling, industry groups including the U.S. Chamber of Commerce, the Security Industry Association (SIA) and We Pay the Tariffs, quickly called for the administration to issue a clear and efficient process for importers seeking relief from excess tariffs paid up to this point to request reimbursement.

Now that the Supreme Court decision has been made, the issue of refunds will likely be decided at the U.S. Court of International Trade (CIT). While the Supreme Court decision did not automatically require refunds of the IEEPA tariffs, there is precedent from a CIT opinion that importers do not have to file administrative protests at U.S. Customs and Border Protection (CBP) in order to preserve their right for a refund. This means that while importers have the ability to protest directly with CBP for refunds, these actions may not be necessary if it appears that CBP will be ordered to establish an administrative process for providing refunds.

The Trump administration has indicated that they will not make this process easy for importers and will likely fight any CIT decision, attempting to tie the process up in litigation for several years; however, congressional Democrats are also weighing in on this process, unveiling a bill on Monday that would require the administration to start refunding roughly $175 billion in tariff revenues that were unlawfully collected under IEEPA.

It is still unclear where the courts and Congress will ultimately fall on the issue of refunds, but importers can prepare themselves for the process with the following:

• Collect data on how much has been paid in IEEPA tariffs. The government keeps meticulous records of all tariffs paid. Documentation can be downloaded from CBP’s Automated Commercial Environment and the Automated Broker Interface. Companies should download their files and keep backup copies so they can refer back as proof of how much was paid in IEEPA tariffs.
• Keep track of filing deadlines and court/CBP decisions. While it may not be necessary to file an administrative protest at CBP for a refund, companies that wish to go this route should keep track of the liquidation dates for tariffs paid. Protests can be filed up to 180 days after liquidation. Around mid-December 2025 is when the earliest entries with IEEPA tariffs begin to liquidate, which means the earliest deadline to file protest will be mid-June 2026. Further guidance on how to apply and/or appeal for refunds will become clear through guidance from CBP and CIT, which will likely include more deadlines and clearer direction on next steps. Companies should keep track of these in order to make sure they can obtain refunds through the official process.

Administration Next Steps

In response to the Supreme Court decision, President Trump has issued a proclamation invoking Section 122 of the Trade Act of 1974 to impose a flat 15% surcharge on most U.S. imports, effective Feb. 24, 2026. Section 122 tariffs have an expiration date of 150 days, which cannot be extended without congressional authorization, which means they will likely expire July 24, 2026. They cannot be country-specific, which is why this is a blanket 15% across the world.

The new tariffs maintain many of the same exemptions that were excluded under the IEEPA tariffs, including products subject to Section 232 tariffs (these will not stack on top of those existing tariffs), articles entering duty free under the U.S.-Mexico-Canada Trade Agreement, textile and apparel articles entering duty-free under the Dominican Republic-Central America Free Trade Agreement and approximately 1,100 product codes listed in Annex II of the proclamation.

The new tariff rate replaces all IEEPA-based tariffs and cannot be modified by country, meaning that some countries face a lower rate than they did before, while other countries originally subject to the 10% charge or other negotiated rate will see an increase in their tariff rate. Trade deals undergone by the administration that were subject to either higher or lower IEEPA rates are now thrown into question with the new restrictions of Section 122 tariffs.

It is possible that the Section 122 tariffs will also be challenged in court; however, with the 150-day expiration deadline, and a severe lack of congressional support for the administration’s tariff policies, it is unlikely that they will be overturned before they naturally expire. However, if they are overturned later, it is likely that courts will point to whatever process exists for IEEPA tariff refunds to be used for importers to request Section 122 relief.

Most likely, the Trump administration is using their Section 122 authority to buy time for additional measures that they plan to take on tariffs, such as authorities given to the administration under Section 232 and Section 301 of the Trade Expansion Act of 1962. These tariff powers allow the administration to take more permanent and legally sound tariff actions, but they can only lead to tariffs after investigations into alleged threats on the nation are concluded, which often take several months. Open and concluded Section 232 and Section 301 investigations are listed on the U.S. Department of Commerce and U.S. Trade Representative websites.

SIA will continue to monitor the ongoing status of tariffs and tariff refunds to provide more guidance to members as it becomes available. If you have any questions or comments, please don’t hesitate to reach out to Lauren Bresette, senior manager of government relations at SIA, at lbresette@securityindustry.org.