This content is provided for informational purposes only and does not constitute legal or customs compliance advice. Brands and retailers remain responsible for ensuring shipments comply with applicable laws and regulations. Consult with your legal counsel and your customs broker to understand your obligations and the impact of court decisions.
What is the 2026 U.S. Supreme Court ruling on tariffs?
On February 20, 2026, the U.S. Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the authorities granted to the President under the IEEPA did not include the power to impose tariffs.
This ruling applies only to tariffs imposed under IEEPA. All other tariffs on U.S. imports, including tariffs imposed under Sections 122 and 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962, are not impacted by this decision.
To review previous tariff policies still in effect from 2025, please review 2025 Tariffs Updates, impact to Brands.
Do brands need to take action following the Supreme Court ruling?
At this time, no immediate action is required unless you were specifically pricing or invoicing based on IEEPA-related tariffs.
You may want to:
- Review whether your products were previously subject to IEEPA-related tariffs.
- Confirm with your customs broker which tariff authorities apply to your goods.
- Monitor guidance from U.S. Customs and Border Protection (CBP) regarding implementation.
If you export goods into the United States, your customs broker can confirm whether your product classifications were impacted by the ruling.
Are brands responsible for issuing tariff refunds?
No. Because duties, including the IEEPA tariffs, are ultimately collected by customs authorities and held by the U.S. Treasury—not by brands or by Faire—brands are not responsible for issuing tariff refunds. If refunds are ordered, it will be the U.S. government that issues them.
At this time, there is no confirmed refund process. The Court of International Trade must first decide whether refunds will be available and to whom. Following that decision, Customs and Border Protection (CBP) and the U.S. Treasury will likely be required to define a process for issuing any refunds owed. It is too early to know what that process will look like..
I shipped DDP and prepaid duties, how do I request a refund?
At this time, U.S. authorities have not yet shared guidance on a formal refund process for tariffs previously paid under IEEPA.
Please note that Faire is not the ultimate recipient of tariffs or duties paid by importers. Duties are assessed and charged by the carrier or customs broker, which then remit the payment to the CBP at import or delivery. As a result, Faire is unable to issue tariff refunds directly.
If you shipped an order Delivered Duty Paid (DDP) and thus paid duties, you may be considered the importer of record for that shipment.If you believe you paid IEEPA tariffs affected by the Supreme Court ruling, you should contact your customs broker or carrier directly to review the entry or entries where you believe you paid the IEEPA tariffs. They may recommend that you formally protest the liquidation of the entry as a way of preserving your right to a refund.
How are the duties estimates shown to retailers calculated?
Duties estimates shown at checkout are based on:
- The product’s declared country of origin.
- The applicable Harmonized Tariff Schedule (HTS) classification.
- The tariff rules in effect at the time the retailer places the order.
Because tariff rules can change before goods clear customs, the final duties assessed by customs authorities may differ from the estimate shown at checkout. When goods enter the country, the carrier or customs broker pays the estimated duties to the customs authorities on behalf of the importer. Customs authorities then make a final determination of duties (“liquidation”). It typically takes around a year to liquidate the entry; if the final assessment exceeds the estimate paid at the time of entry, then the customs authorities will charge the difference to the importer through the customs broker.
What new tariffs have been imposed?
A temporary 10% ad valorem import duty has been imposed on certain articles imported into the United States.
This temporary import duty:
- Applies for a period of 150 days.
- Took effect on February 24 at 12:01 a.m. Eastern Standard Time.
An ad valorem duty means the tariff is calculated as a percentage of the value of the imported goods.
If you’re unsure whether this temporary duty applies to your shipment, your carrier or customs broker can confirm how your goods were classified and which tariff programs were applied.
Do USMCA exemptions remain in place?
Yes, USMCA (United States–Mexico–Canada Agreement) exemptions remain in place.
The Supreme Court ruling addressed tariffs imposed under IEEPA and did not change USMCA rules of origin or eligibility requirements.
If your goods qualify under USMCA:
- They may continue to receive duty-free or reduced-duty treatment.
- Proper certification and documentation are still required.
Your customs broker can confirm whether your goods qualify for USMCA treatment.