U.S. Tariff Changes: What’s happened and what it means for your supply chain

On 20 February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs, invalidating the IEEPA-based tariff programme. For businesses with supply chains moving goods into or out of the USA, this is a significant development. 

What this means in practice 

The ruling creates immediate uncertainty across three areas: 

• The U.S. Customs and Border Protection (CBP) has updated its tariff codes and enforcement approach, entry processing may be inconsistent. Businesses should not assume automatic clearance during this transition period. 

• The ruling does not automatically trigger refunds on duties already paid. Eligibility depends on entry liquidation status and formal protest processes. Preserving documentation now is critical. 

• The Section 122 mechanism introduces broad landed cost pressure, potentially up to 15% across a wide range of product categories and trade lanes. Exemptions remain subject to change 

Which trade lanes are most affected? 

Lanes into the USA from Europe, the UK, Asia, and Oceania carry the highest baseline risk at this time. Businesses shipping from Canada into the USA carry lower exposure, particularly where the United States–Mexico–Canada Agreement (USMCA) preference documentation is strong. South American lanes carry medium-to-high exposure depending on product category. 

It is important to recognise that Section 232 (national security tariffs) and Section 301 (unfair trade practices tariffs) remain entirely unaffected by the Supreme Court ruling. For many businesses with significant China-origin or steel and aluminium sourcing, existing duty obligations continue unchanged. 

What this signals for global trade 

This ruling could mark the beginning of an unpredictable period in which trade policy shifts faster than businesses can update their contracts, costings, or supply chain plans as several pressures are changing at once.  

For any business moving significant volumes of goods into the USA, particularly from Europe, the UK, Asia, or Oceania, the next few weeks call for pro active and informed decision-making.  

Practical steps to take now 

In the immediate term, we recommend businesses focus on three areas: 

• Re-forecast your landed cost across key SKU families at 0%, 10%, and 15% duty sensitivities before the Section 122 position crystallises. 

• Entry summaries, duty payment records, broker instructions, and shipment dates should all be secured now in case refund or protest opportunities arise. 

• Consider time-boxed tariff and surcharge clauses in new quotes and contract renewals. Transparent pass-through is preferable to absorbing unexpected margin pressure. 

How Ligentia can help 

Our teams are tracking this situation daily and turning that intelligence into practical guidance for our customers. We’re helping them to map out different scenarios so supply chain and commercial teams can make proactive decisions without unnecessary disruption to operations or costs. 

If you’d like to understand your exposure and explore your options, please get in touch with us.