Bjørn Christian Lilletvedt Tovsen
Caroline Svelland Hauge
Axel Johnsen Holm
On 20 February 2026, the Supreme Court of the United States held that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) by the Trump Administration are invalid, opening the door for potential refunds for companies that have paid such duties. In response, President Trump issued executive orders replacing the IEEPA tariffs with a new 10% global tariff under Section 122 of the Trade Act of 1974, effective from 24 February 2026 for a period of 150 days.
The ruling creates both refund opportunities and renewed uncertainty for companies engaged in U.S. trade and calls for a reassessment of tariff exposure and contractual risk allocation.
Refund opportunities
The Supreme Court's decision likely applies retroactively, meaning companies that have already paid tariffs imposed under the IEEPA may be entitled to refunds. The precise mechanics of the refund process remain unclear, and refunds are unlikely to be automatic or immediate, but companies that have, directly or indirectly, paid IEEPA tariffs on imports to the United States should take steps to initiate the process of securing refund of the unlawfully imposed tariffs.
Contractual allocation of tariff exposure
Contracts related to cross-border sale and supply of goods allocate tariff risk through surcharge clauses, price adjustments, or indemnification provisions. Companies that are directly or indirectly involved in U.S. trade should review their contracts related thereto to understand and potentially initiate action towards contracting parties or U.S. customs to secure refund of unlawfully imposed tariffs. This should be done as soon as possible to avoid losing refund claims due to contractual or statutory limitations.
Alternative tariffs are now in effect
The Supreme Court's opinion does not mean tariffs are going away. Shortly after the opinion was announced, President Trump enacted tariffs at comparable levels under section 122 of the Trade Act of 1974. These tariffs are however limited to 150 days. What comes next remain to be seen.
The Supreme Court’s opinion pertains only to tariffs imposed under the IEEPA. Tariffs enacted by the President under other statutory authorities remain unaffected.
Trade Agreements
The implications of the Supreme Court's decision on trade agreements negotiated by the Trump administration in the wake of its introduction of the IEEPA tariffs remain to be seen, but we believe such agreements may be affected to the extent they concern trade covered by the invalid IEEPA tariffs.
How we can assist
We are monitoring U.S. tariff developments closely with our U.S. partners. Please contact us if you have any queries regarding refunds, tariff exposure, commercial arrangements, or other concerns related to international trade.
