Supreme Court Ruling on U.S. Tariffs

Supreme Court Ruling on U.S. Tariffs

UPDATED February 23, 2026

U.S. Customs and Border Protection (CBP) has issued a notice stating that duties imposed under IEEPA will no longer be assessed/collected beginning at 12:00 a.m. EST on February 24. Starting at 12:01 a.m., those duties will be replaced by a new 10% global tariff under Section 122. In effect, the change represents an overnight substitution of tariff rates.

Over the weekend, Donald Trump posted on Truth Social, announcing his intent to raise the recently enacted 10% global Section 122 tariff to 15%, stating the increase would be effective immediately.

While this announcement has drawn significant attention, several important clarifications are worth noting.

What Is Officially in Effect Right Now?

  • – The announcement was made via social media, not through a signed executive order or presidential proclamation.
  • – Until a formal legal instrument is issued and U.S. Customs and Border Protection (CBP) publishes enforcement guidance, the tariff rate scheduled to take effect remains 10%.
  • – The currently enacted 10% rate is set to apply starting Tuesday, February 24 at 12:01 a.m. EST.

Key Limits Under Section 122

  • 15% is the maximum allowable tariff rate under Section 122 of the Trade Act of 1974.
  • – This means no additional increases are possible under this specific authority.

What This Means for netParcel Shippers

  • No immediate change to landed costs beyond the previously announced 10% tariff.
  • – Shipments moving now or planned for the coming days should continue to be modelled at the 10% rate unless and until CBP issues new guidance.
  • – Pricing volatility remains possible if new tariff actions are introduced under other legal authorities, as hinted in the post.

What We’re Watching Next

The administration also signalled that additional tariff actions may be announced in the coming months, potentially using different trade authorities. These could affect:

  • – Product-specific duties
  • – Country-specific import rules
  • – Longer-term shipping and sourcing strategies

Please also note that Section 232 tariffs (steel/aluminum) and Section 301 tariffs (China) remain in effect and are unaffected by this change.

We invite you to click here to stay up to date with the industry experts over at Zonos!


UPDATED February 21st, 2025

Three major U.S. presidential actions were issued within minutes of each other, significantly reshaping how import duties will be applied going forward. Below is a clear summary of what’s changed—and what it means for netParcel customers shipping cross-border.

Big picture:
The administration shifted tariff authority away from the International Emergency Economic Powers Act (IEEPA)—which the U.S. Supreme Court struck down on February 20, 2026—and moved it to Section 122 of the Trade Act of 1974, which remains in force. At the same time, a separate Executive Order confirmed that the suspension of de minimis (duty-free) treatment continues under its own authority.

IEEPA Tariffs Have Ended

Duties imposed under IEEPA have been terminated. This includes reciprocal and country-specific tariffs previously applied to China, Canada, Mexico, Brazil, Russia, Cuba, Iran, and Venezuela.
Importantly, Section 232 tariffs (steel and aluminum) and Section 301 tariffs (China-related duties) remain fully in effect and unchanged.

New 10% Global Tariff Under Section 122

Beginning February 24, 2026, at 12:01 a.m. EST, a 10% ad valorem tariff on most imported goods will take effect under Section 122 of the Trade Act of 1974. This measure is scheduled to remain in place for 150 days.

Certain categories are excluded, including:

  • – Critical minerals
  • – Pharmaceuticals
  • – Select electronics
  • – USMCA-compliant commercial shipments from Canada and Mexico

De Minimis Suspension Confirmed (Key Impact for E-Commerce)

A separate Executive Order confirms that duty-free de minimis treatment remains suspended for all shipments, regardless of value, origin, or transportation method.

The order:

  • – Continues the suspension of de minimis for all shipments
  • – Maintains the qualified party process for international postal shipments
  • – Resets postal shipment duties to the 10% Section 122 rate
  • – Confirms that CBP systems are in place to collect these duties
  • ** These provisions also take effect February 24, 2026, at 12:01 a.m. EST.

What Happens Next

We are now awaiting implementation guidance from U.S. Customs and Border Protection (CBP). Once CBP issues instructions, netParcel systems will be updated automatically.

We’ll continue monitoring developments closely and will share updates as soon as additional guidance becomes available. If you have questions about how these changes may affect your shipments or landed costs, our team is here to help.


ORIGINAL POST

The U.S. Supreme Court has issued a ruling that limits the use of emergency executive powers to impose broad U.S. import tariffs. While the decision is significant, its practical impact on day-to-day shipping remains uncertain and is still developing.

Why This Matters for Small Parcel Shipments

For netParcel customers shipping small parcels into the U.S., this ruling may be relevant because:

  • – Some tariffs applied under emergency authority are now legally in question.
  • – It is not yet clear how duties already paid—or currently being assessed—will be handled by U.S. authorities.
  • – Other tariffs imposed under separate trade laws may remain in effect, meaning not all duties are affected.

At this time, U.S. Customs and Border Protection has not issued comprehensive guidance on how this ruling will be applied operationally to imports, including low-value and small parcel shipments.

What to Expect Next

There is no confirmed timeline or process for changes to tariff collection, adjustments, or potential refunds. Importers and shippers should expect continued updates as regulatory and administrative responses take shape.

For those interested in understanding how Supreme Court decisions become final and actionable, Rule 45 of the U.S. Supreme Court Rules provides helpful context on the issuance of court mandates:
https://www.law.cornell.edu/rules/supct/rule_45

netParcel will continue to monitor developments and share updates as they become relevant to cross-border and small parcel shipping.

Thank you,
netParcel Management

Further Reading

U.S. Ends De Minimis Exemption for China and Hong Kong Products

Effective May 2, 2025, the United States has removed the de minimis exemption for products imported from China and Hong Kong SAR, creating significant changes for cross-border e-commerce and shipping. If you’re a netParcel user shipping to U.S. customers, it’s critical to understand what this means and how to adapt. What’s Changed? Previously, shipments with […]

Read More

U.S. Temporarily Reduces Tariffs on Chinese Imports

On May 12, 2025, President Trump issued an executive order temporarily adjusting U.S. tariff rates on imports originating from China. As part of a 90-day initiative to support trade negotiations, the U.S. has reduced tariffs on these goods from 145% to 30%. Tariffs on certain sensitive sectors, including national security-related and fentanyl-related items, remain in […]

Read More

2025 Holiday Shipping Schedule

Holiday shipping comes with tight deadlines, high volumes, and winter delays, so planning ahead is essential. All major Canadian carriers will be closed on December 25, December 26, and January 1, with no pickups or deliveries on those dates. Starting early helps ensure your packages arrive on time. Recommended Last Ship-By Dates for Christmas Delivery […]

Read More