Some United States tariffs repealed in Supreme Court ruling

All tariffs on goods entering the United States (US) under the International Emergency Economic Powers Act (IEEPA) ended at midnight on 24 February 2026, after the US Supreme Court ruled in Learning Resources, Inc. v. Trump that the US President lacks authority to impose tariffs under IEEPA. The decision confirmed tariff power belongs to Congress and clarified that IEEPA’s import regulation does not include duties.

The Supreme Court did not specify a refund process, so the Court of International Trade ordered US Customs and Border Protection (CBP) to refund all IEEPA duties. The CBP has explained that the unusually high volume of refunds and existing system constraints prevent it from processing IEEPA duty refunds through the normal process, so it is developing new refund capabilities in the Automated Commercial Environment (ACE) called the Consolidated Administration and Processing of Entries (CAPE) to calculate and issue accurate refunds.

Although importers are entitled to IEEPA duty refunds, the refunds depend on CBP completing and deploying new ACE‑based automation, with CBP reporting that the upgrades are about 70 per cent complete.

Importers should not expect automatic refunds and should prepare now to avoid delays. Recommended steps include confirming ACE and Automated Clearing House (ACH) refund setups are complete, organising entry‑level data for future claims, and monitoring CBP’s phased rollout of the CAPE system and related guidance once the claim portal goes live.

New measures affecting Australian exporters

The end of IEEPA tariffs does not remove US tariff risks. After the Supreme Court invalidated these tariffs, the Trump Administration imposed a global 10 per cent tariff under Section 122 of the Trade Act of 1974, which could rise to 15 per cent for up to 150 days pending Congressional approval.

Australia, which remains at a 10 per cent rate, could face a 15 per cent tariff, impacting Australian exporters. Despite the Australia-US Free Trade Agreement (AUSFTA), the Section 122 tariff applies broadly to most imports with limited exceptions for critical minerals, pharmaceuticals, certain electronics, and goods already subject to Section 232 measures, leaving Australia exposed like other non-FTA countries.

Unaffected measures

The ruling leaves Section 232 tariffs on steel, aluminium, copper, and automobiles; and Section 301 tariffs on imports from China and Nicaragua, unchanged. Customs de minimis exemption suspension continues under a new executive order, requiring low-value shipments (US$800 or less) to pay duties at Section 122 rates. Despite the Supreme Court's invalidation of IEEPA-based duties, significant tariff exposure remains through Sections 122, 232, and 301, with possible further increases.

Refunds, risk management, and customs strategy under shifting US tariffs

Now is the time for exporters to take proactive steps to manage risk, secure refunds, and review their customs strategy. Importers into the US should consider taking the following actions:

  • Map and quantify exposure to these tariffs and act promptly to secure refunds
  • Ensure import records are complete and audit-ready, and that ACE and ACH setups are complete to facilitate refund processing
  • Keep entries subject to IEEPA duties separate from those under Sections 232 and 301 to prevent overclaiming
  • Prioritise high-value categories and monitor statutory deadlines for protests and corrections, as missed deadlines are difficult to rectify
  • Review contracts for tariff pass-through clauses and pricing adjustments to determine refund beneficiaries
  • Reassess supply chain arrangements in light of new tariff baselines, if these were previously restructured under earlier regimes

Recognise that fragmented tariff regimes heighten compliance risks - maintain vigilance and adapt accordingly.

Key takeaways

What does the US Supreme Court ruling mean for IEEPA tariffs and refunds?

  • All tariffs imposed under IEEPA ended on 24 February 2026 following a US Supreme Court ruling, with importers entitled to refunds that depend on CBP completing new ACE‑based refund automation.

Why do tariff risks remain for Australian exporters after the repeal of IEEPA tariffs?

  • A global 10 per cent tariff has been imposed under Section 122 of the Trade Act of 1974, which may rise to 15 per cent, and applies broadly to Australian exports despite the Australia‑US Free Trade Agreement.

Which US tariffs and measures continue to apply to imports?

  • Section 122, Section 232, and Section 301 tariffs remain in force; the de minimis exemption is suspended; and significant tariff exposure continues under multiple US trade regimes.