On 20 February 2026, the US Supreme Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs. Four days later, on 24 February, a temporary import surcharge under Section 122 of the Trade Act of 1974 took effect, limited by law to 150 days unless Congress extends it.
What changed
- Tariffs imposed under IEEPA no longer apply. Whether importers can recover duties already paid is a separate question still being worked through by the courts and customs authorities.
- A temporary, broad surcharge replaced them, with its own exemptions and a fixed end date in July.
What did not change
- Tariffs under other laws, such as existing Section 301 duties on many Chinese goods and Section 232 duties, were not affected by the ruling.
- The suspension of the US de minimis exemption, in force for all countries since 29 August 2025, continues. Low-value parcels still go through formal or informal entry with duties paid.
What we are recalculating
- Landed cost per product, using the actual classification and origin of each item rather than a single "China rate".
- Two scenarios for the second half. The surcharge has a legal end date, but what replaces it is not known. We price with a base case and a higher-duty case, and keep the decision points written down.
- Stock timing. We avoid rushing inventory in ahead of uncertain changes; storage costs and cash tied up in stock are certain, while tariff outcomes are not.
For brands we work with, the practical message is to keep tariff assumptions visible and dated. When the rules change again, a clear model is far quicker to update than a price list built on memory.