Initial Impact of the Supreme Court Tariff Ruling
Published on by Lauren Huster in International Business, Tax Services
- IEEPA tariffs struck down: The Supreme Court ruled Trump’s “Liberation Day” tariffs unconstitutional, voiding the 10% (and higher) import tariffs that raised $160B to date.
- Section 232 tariffs remain: Tariffs on steel, aluminum, copper, vehicles, and timber stay in place.
- Refunds pending: Lower courts will determine how the $160B collected will be returned, a process that could take months.
- Uncertainty continues: Trump signaled plans for a new global 10% tariff under a different authority.
What tariffs were overturned?
The Supreme Court ruled Friday, February 20th, 2026, that President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs are unconstitutional. The Tax Foundation estimates that the IEEPA tariffs raised more than $160 billion for the government through February 20th, 2026, and would have raised $1.4 trillion more through 2035.
These tariffs were referred to as “Liberation Day” reciprocal tariffs. These tariffs generally imposed a 10% tariff on imports from most countries and higher rates on some, such as Mexico and Canada.
What tariffs remain?
It is important to note that while the IEEPA tariffs were ruled unconstitutional, the Section 232 tariffs will remain in place. These tariffs apply to steel, aluminum, copper, vehicles, and timber. The Tax Foundation estimates that the Section 232 tariffs will raise $635 billion through 2036.
What’s next?
The IEEPA tariff case will return to the United States Court of International Trade to address how the $160 billion of tariffs collected will be returned. This would refund nearly three-fourths of Trump’s Tariff Revenues, per the Tax Foundation.
According to the Wall Street Journal, “Trade specialists say it could take days or weeks for Customs and Border Protection to officially tell importers the levies are no longer in force. They say it could be months before lower courts establish a refunds process.”
After the ruling, President Trump spoke on February 20, 2026, and stated he would impose a global 10% tariff utilizing a different authority. Companies are back to uncertainty with tariffs as we look to the future.
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If you have questions on the impact of tariffs, the Barnes Dennig team of top international tax pros is here for you: contact us today. We’ll continue to publish updates about the upcoming tariffs and provide perspective on the accounting impacts. To stay up-to-date, subscribe to our updates. As always, we’re here to help.
