Supreme Court tariff ruling: What it could mean for your business

This blog post was originally published on March 6, 2026 and updated on September 9, 2026

In a recent, widely watched decision, the Supreme Court ruled on February 20, 2026, that the Trump administration overstepped its authority by imposing certain tariffs under the International Emergency Economic Powers Act (IEEPA), shifting the regulatory landscape for U.S. businesses engaged in international trade.

This change sent ripples through the business community. With billions in potential duty refunds on the table and compliance timelines already ticking, many leaders are wondering: What do I need to do now?

While headlines often spotlight the political debate, the real question for business owners is practical: How can your business respond effectively to manage risk? This ruling may open the door to cost recovery and strategic supply chain changes, but it also brings a host of financial and operational considerations.

Here’s what’s changed, what remains in place, and some practical actions you can take now to protect your interests.

What changes?

The Court’s decision directly affects IEEPA-based tariffs that have impacted a large share of U.S. imports since 2025. While businesses that paid these duties may have an opportunity to pursue refunds, the process remains subject to ongoing court proceedings and potential appeals, and could involve significant legal, administrative, and documentation challenges. Sectors like electronics, furniture, and pharmaceuticals have been among the most exposed, seeing landed costs jump by double digits. For companies in heavily affected industries, duties already paid to U.S. Customs may represent a potential source of working capital—if refund claims are pursued successfully and funds are ultimately recovered.

One of the biggest misconceptions surrounding the Supreme Court’s ruling, according to Larry Ordet of Sandler, Travis & Rosenberg, P.A., is the expectation of immediate refunds. Refunds have and will continue to depend on court processes and administrative timelines. Businesses should take the steps necessary to obtain refunds and/or preserve their potential right to refunds.

Ordet explains that importers should review entries where IEEPA duties were paid and, where possible, submit refund requests via CBP’s CAPE system. CBP launched the first phase of CAPE on April 20, 2026, allowing importers with unliquidated entries, or entries liquidated within the prior 80 days, to submit refund claims directly through the ACE Portal. A second phase addressing entries flagged for reconciliation and any involving antidumping/countervailing duties began in June 2026, and in July 2026 the Court of International Trade directed CBP to begin a third phase, which addresses refunds to companies that have filed an action at the CIT with processing handled on a rolling basis according to filing date. Notably, court filings have increased significantly since early July 2026, suggesting more businesses are pursuing this route directly rather than waiting on the broader refund process. Until CAPE phase 3 begins, importers may also consider filing timely protests (under 19 U.S.C. 1514) within 180 days of entry liquidation.

What stays the same?

Not all tariffs are disappearing. Duties under other laws remain in effect, and more are forthcoming. The assessment of these duties, like those under IEEPA, Section 232, Section 301, and Section 338, has been challenged in court in virtually every case — though final decisions on most of these matters remain months away. In other words, while this ruling created a potential opportunity, it’s not the end of tariff risk or volatility. Businesses should continue to closely monitor the situation. Whether you are in retail, industrial, or consumer goods, ongoing uncertainty requires flexible planning and careful attention to contract terms, cash flow, and supply chain exposure.

Following the Supreme Court’s ruling, the administration initially assessed a temporary 10% global surcharge on imports under Section 122 of the Trade Act of 1974, effective February 24, 2026. Since Congress didn’t vote to extend Section 122, it expired by operation of law on July 24, 2026. But businesses didn’t get a break as new Section 301 tariffs took effect the same day, effectively replacing it. The replacement tariff targets around 60 countries with either a 10% or 12.5% duty depending on the country.

Section 232 tariffs have also broadened. Since April 2026, duties on steel, aluminum, and copper products have been assessed on customs value rather than metal content alone, with further refinements to specific product rates made in June 2026. The administration also extended Section 232 into pharmaceuticals, imposing a 100% tariff on certain patented drugs and active pharmaceutical ingredients, effective July 31, 2026 for select companies and September 29, 2026 for all others.

More recently, the administration has also invoked Section 338 of the Tariff Act of 1930 to impose an additional 50% tariff on a range of Canadian goods, including dairy, alcoholic beverages, motor vehicles, and hundreds of other products. These tariffs took effect August 22, 2026, after trade negotiations between the U.S. and Canada broke down. Canada has announced it will respond with matching, dollar-for-dollar retaliatory tariffs beginning September 8, 2026. This remains a fast-moving situation, and businesses with large supply chains should monitor closely.

Tax and accounting implications

Tariffs are customs duties, but their refunds and credits introduce real accounting and tax complexity. The first step is to clarify with your finance team whether prior duty costs were expensed or capitalized, since refunds may impact COGS or inventory values and may need to be recognized in taxable income at both the federal and state levels. With refund claims now being actively processed through CAPE, questions arise regarding how prior duty costs were treated and how refunds should be recognized. It’s also important to anticipate impacts on state apportionment and estimated tax payments, as duty refunds or inventory adjustments can have a carryover effect. Early collaboration with your accounting and tax advisors can help manage documentation and reduce the risk of reporting errors in an environment that remains fluid.

Planning ahead in a shifting tariff landscape

To navigate these complexities effectively, what steps should you consider? A proactive approach might involve a thorough review of your import data, an evaluation of refund or protest filing options, and careful alignment of tax and accounting treatments. Connecting with customs specialists can also provide critical insights. Taking thoughtful steps now can help position your business to respond effectively as the regulatory and trade landscape continues to evolve.

Compliance and documentation processes vary widely depending on the company and the products they import. For instance, certain exemptions exist for specific goods, which may benefit from unique tariff provisions. Companies are encouraged to review their entry data under the ACE system — which customs uses to evaluate importers and through which the new CAPE refund portal will operate — to identify potential errors or opportunities for tariff mitigation. Ultimately, to obtain refunds, importers must activate their ACE accounts and their Automated ACE Refund Authorization, as CBP is no longer issuing paper refund checks (all refunds will be processed electronically through ACH).