CBP Halts IEEPA Tariffs After Supreme Court Ruling

Trade policy rarely moves this fast, but a Supreme Court decision in February 2026 upended the tariff system that had governed imports from Canada, China, and Mexico for over a year. U.S. Customs and Border Protection (CBP) halted collection of IEEPA-based duties at midnight on February 24, 2026, leaving importers to sort through refund claims and a new tariff landscape.

CBP halt date: February 24, 2026 ·
Supreme Court ruling date: February 2026 ·
Tariff rate on Canada/China/Mexico: 25% on most goods (10% on energy) ·
Legal basis terminated: International Emergency Economic Powers Act (IEEPA) ·
De minimis threshold change: $800 exemption eliminated for covered goods

CBP halted a tariff regime that had been collecting billions monthly. The table below shows the key facts of what changed and when.

What was the Supreme Court decision on the IEEPA tariffs?

Supreme Court ruling date and basis

On February 20, 2026, the U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act does not authorize the president to impose tariffs – a decision written by Chief Justice John Roberts, according to Skadden (corporate law firm). The ruling effectively invalidated the legal foundation of the 25% tariffs on Canada, China, and Mexico that had been in place since early 2025.

Key findings against the tariffs

• The court found that IEEPA gives the president broad economic emergency powers but not the authority to impose tariffs as a trade policy tool – BHFS (trade law firm).
• President Trump issued an executive order terminating all IEEPA-based tariffs on the same day as the ruling, per BHFS and Stinson LLP (trade law).

The implication: The ruling didn’t just halt collections; it retroactively questioned the legality of every IEEPA duty paid since early 2025, setting the stage for a massive refund pipeline.

Is CBP no longer collecting IEEPA tariffs as of February 24 2026?

CBP announcement to halt collections

CBP updated its Cargo Systems Messaging Service to stop collecting IEEPA duties effective 12:01 a.m. Eastern Standard Time on February 24, 2026 – BHFS (trade law firm). The halt applies to merchandise entered for consumption or withdrawn from warehouse for consumption on or after that moment, as confirmed by Baker Donelson (law firm).

Effective date and time

• 12:01 a.m. EST, February 24, 2026 – BHFS
• All entries with IEEPA duty lines after that timestamp are being liquidated without those duties – Stinson LLP

The pattern: CBP acted within four days of the Supreme Court decision, but the real work – refunding billions in duties – would take months and require court involvement.

Will IEEPA tariffs be refunded?

IEEPA tariff refund request process

On March 2, 2026, the Federal Circuit issued a per curiam order allowing the Court of International Trade to begin determining refunds – Parker Poe (law firm). Two days later, CIT Judge Richard K. Eaton ordered CBP to liquidate all unliquidated entries and reliquidate any liquidated entries that are not yet final – Parker Poe. Stinson LLP reports that this means CBP must refund all IEEPA duties collected.

The first phase of refunds launched on April 20, 2026, limited to certain unliquidated entries and entries within 80 days of liquidation, according to Avalara (tax compliance).

Who is eligible for refunds

• Importers who paid IEEPA duties on goods entered from early 2025 onward – Avalara
• Entries that were unliquidated as of March 4, 2026 – Parker Poe
• Entries liquidated but not yet final (within 80 days of liquidation) – Avalara

Why this matters: For importers, the window to claim refunds is narrow and process-oriented – missing the deadline means losing the chance to recover potentially millions.

What is the $800 de minimis rule change affecting tariffs?

De minimis exemption eliminated

The U.S. eliminated the $800 de minimis exemption for international packages under the IEEPA tariff regime – Avalara (tax compliance). Previously, shipments valued under $800 could enter duty-free; now they are subject to the applicable tariff rates if the goods originate from Canada, China, or Mexico and fall under the IEEPA scope.

Impact on parcels worth under $800

• All international parcels from Canada, China, and Mexico now need duties calculated and paid – Avalara
• Businesses that relied on the de minimis exemption for low-value shipments face increased compliance costs – Baker Donelson (law firm)

The implication: The elimination of the $800 exemption is a lasting structural change, not a temporary measure, and it will continue to affect e-commerce and small businesses.

What comes after IEEPA tariffs? Section 122 and other trade actions

Transition to Section 122 tariffs

With IEEPA tariffs invalidated, the administration has moved to implement tariffs under Section 122 of the Trade Act of 1974 – Baker Donelson (law firm). Section 122 allows temporary import surcharges but has stricter limits than IEEPA.

Status of Section 301 and 232 tariffs

• Section 301 tariffs (on Chinese goods) remain active – Baker Donelson
• Section 232 tariffs (on steel and aluminum) continue unaffected – Baker Donelson

The catch: The end of IEEPA tariffs does not mean tariff-free trade – importers now face a patchwork of remaining tariffs under other legal authorities, potentially at different rates.

Who paid the 25% IEEPA tariffs and how did they affect Canada, China, and Mexico?

Tariff rates by country

The IEEPA tariffs imposed a 25% duty on most goods from Canada, China, and Mexico, with a reduced 10% rate on energy imports from Canada – Skadden (corporate law firm).

Impact on steel, aluminum, and auto imports from Canada

• Canadian retaliatory tariffs targeted U.S. steel, aluminum, and auto imports – Baker Donelson
• The softwood lumber dispute continued to add complexity to Canada–US trade relations – Wikipedia (softwood lumber dispute)

The pattern: The IEEPA tariffs created a self-inflicted tax on North American supply chains, and their removal now requires unwinding cross-border retaliation.

Timeline: From IEEPA tariffs to termination

• Early 2025: IEEPA tariffs imposed on Canada, China, and Mexico
• 2025–2026: Legal challenges filed and litigated
• February 2026: Supreme Court rules IEEPA tariffs illegal – Skadden
• February 23, 2026: CBP announces halt – BHFS
• February 24, 2026: CBP stops all IEEPA tariff collections at 12:01 a.m. EST – BHFS
• March 4, 2026: CIT orders liquidation and refunds – Parker Poe
• April 20, 2026: Phase 1 refunds begin – Avalara

What this means: The timeline shows that refunds took two months to start – a gap that created cash-flow strain for importers who had already paid duties.

What’s confirmed vs. what’s still unclear

Confirmed facts

• Supreme Court ruled IEEPA tariffs illegal – Skadden
• CBP halted collections on February 24, 2026 – BHFS
• Refund request process available via CBP and partners – Avalara
• $800 de minimis exemption eliminated – Avalara
• Section 122 tariffs begin; Sections 301 and 232 remain – Baker Donelson

What’s unclear

• Total refund amounts and processing timeline – Avalara (not yet disclosed)
• Full scope of Section 122 tariff impact – Baker Donelson (uncertain)
• Long-term US lumber supply without Canadian imports – Wikipedia (ongoing dispute)

Reaction and expert perspectives

“The Supreme Court decision ends the IEEPA tariff regime, but the refund process is complex and will require careful coordination between CBP and importers.” – CBP official, as reported by BHFS (trade law firm)

“The ruling was a clear statement that the president cannot use IEEPA as a blank check for trade policy.” – Supreme Court ruling summary, cited by Skadden (corporate law firm)

“Importers who paid IEEPA duties should immediately review their entries and prepare refund claims – the window is limited.” – Industry analysis from Truck Parts & Service (trade publication)

The pattern: All three perspectives agree on the abruptness of the change and the urgency for importers to act, but differ on the ease of the refund process.

For importers who paid IEEPA duties, the choice is clear: file refund claims immediately through CBP’s phase 1 process, or risk losing the recovery window. The tariff landscape has shifted, but the need for proactive customs management has never been greater – those who wait will face a significantly narrower path to getting their money back.

Related reading: US Senate Nullify Canada Tariffs: Latest Vote and Impact

The CBP’s decision followed a broader legal trend, including a similar Swiss tariff ruling that also struck down Trump-era trade measures.

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