The Supreme Court Struck Down IEEPA Tariffs. What Does That Mean For Your Business?

ARTICLE | March 10, 2026

If your business imports raw materials, components, or finished goods, the past few months have delivered more uncertainty than most industries see in a decade. On February 20, 2026, the U.S. Supreme Court issued a landmark ruling, holding that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. For manufacturers and distributors, this decision is not just a legal headline. It has immediate, tangible consequences for your supply chain, your contracts, your cash flow, and your compliance obligations.

What the Ruling Actually Means

The Court’s decision invalidates the tariffs that were imposed under IEEPA in 2025, confirming that the authority to impose tariffs belongs to Congress, not the executive branch.  More importantly, tariffs previously paid under IEEP are refundable.  However, these refunds are not automatic and importers must take affirmative steps to pursue them.

At the same time, the Administration moved quickly after the ruling, implementing a new 15% tariff on most imports under Section 122 of the Trade Act of 1974.  This tariff is effective February 24, 2026 and is temporary, limited to 150 days absent congressional action.   Goods covered under the US-Mexico-Canada Agreement (USMCA) are exempt from this tariff.    Longer-term replacements are expected.

“This ruling does not simply remove a layer of tariffs. It resets the framework entirely. Manufacturers and distributors need to understand that the legal ground has shifted, and the businesses that respond quickly and deliberately will be in a far stronger position than those waiting to see what comes next.” – Ann Montgomery, Partner, Insero Advisors

The Refund Opportunity Is Real, But It Has Deadlines

Companies that served as the importer of record on entries made between February 2025 and February 24, 2026, may be eligible for refunds on IEEPA duties paid. Only IEEPA duties are refundable; Section 232 or 301 duties are not.

While the U.S. government is still finalizing how companies can apply for the refund, businesses need to start the process now.   The first step is identifying all affected tariff entries, gathering documentation including entry summaries, duty payment records, and liquidation dates, and working with customs and trade professionals to assess eligibility and file the appropriate protests.   “Well-prepared documentation is the key to a sucessful tariff refund claim.  By organizing your tariff records now, you position your company to capture the full benefit without delays.” – Ann Montgomery, Partner, Insero Advisors

Downstream buyers who were contractually required to absorb tariff costs cannot receive tariff refunds directly from U.S. Customs, however, they can still recover their share through legal and contractual rights with their suppliers.

Your Contracts and Supply Chain Need a Fresh Look

Beyond the refund question, the ruling creates a ripple effect across commercial relationships. Fixed-price supply agreements, long-term procurement contracts, and pricing models that were built around IEEPA tariff structures may no longer reflect current realities. Tariff pass-through clauses, force majeure provisions, and indemnification language all warrant careful review. On the supply chain side, companies should audit dependencies on tariff-impacted countries and begin modeling scenarios that incorporate the current tariff rates as well as the potential for additional actions. Businesses that wait for the dust to settle before revisiting their landed cost models may find themselves caught off guard when the next change arrives.

Financial Reporting and Forecasting Implications

For companies that have not yet issued their financial statements as of February 20, 2026, the ruling qualifies as a subsequent event under ASC 855 and requires careful evaluation. More broadly, potential refund claims are contingent assets that carry disclosure and judgment requirements under applicable accounting guidance. The interplay of refund timing, contingent asset treatment, tariff deductibility analysis, and the shift to new tariff regimes makes this a period that demands close coordination between your operations, legal, and finance teams. Organizations that have been under margin pressure throughout the tariff cycle should also evaluate whether accelerated partial recovery through alternative liquidity strategies makes strategic sense relative to waiting for a full administrative refund.

How Insero Can Help

At Insero Advisors, we understand that developments like this one do not arrive at a convenient time. They land in the middle of finalizing your year end financials and taxes,  your contract negotiations, and your planning cycle. Our team works proactively with manufacturers and distributors to understand the impacts for your business. Whether you need help assessing refund eligibility, collecting documentation, updating your financial models,  or reviewing tariff-related contract language, we bring the technical depth and genuine care that have defined our practice for more than 50 years.

If you have questions about how the IEEPA ruling affects your business, we encourage you to reach out to your Insero advisor or contact our team directly. The window to act is open, and we are ready to help you move forward with clarity and confidence.