Over the last year, the administration has imposed sweeping global and reciprocal tariffs on nearly 100 countries under the International Emergency Economic Powers Act (IEEPA), citing trade deficits, domestic onshoring goals and other factors as justification. On February 20, 2026, the U.S. Supreme Court (SCOTUS) ruled 6-3 that IEEPA does not authorize the president to impose tariffs, a key victory for Main Street that brought an end to dozens of global and reciprocal tariffs imposed under the statute. To help you understand the Supreme Court’s ruling and what it could mean for your small business, we’ve put together an overview of the decision and its potential impacts.
Where are we now?
The Supreme Court’s ruling is a major victory for small businesses that have been burdened by rising tariffs that impact their supply chains and bottom lines. However, the ruling applies only to tariffs imposed under IEEPA, meaning that tariffs on steel and aluminum, for example, that were enacted under Section 232 remain in effect, along with several others. The administration has also indicated that it will invoke other trade authorities to keep global tariffs in place and has already imposed a new 10% tariff on all foreign goods under Section 122 of the Trade Act of 1972, which allows the president to impose tariffs of up to 15% for a maximum of 150 days. Watch our briefing on this issue.
The current status of refunds
The U.S. Court of International Trade recently ordered the U.S Customs and Border Protection (CBP) to begin issuing refunds, with interest, to importers of record that paid IEEPA tariffs. CBP has asked for 45 days to build a new bulk-processing system, known as CAPE, to accept, review and mass process claims, and says it expects the system to be ready by mid-April. The agency estimates that roughly 330,000 importers, covering more than 53 million entries and $166 billion in IEEPA-related duties, could be eligible for refunds. Still, the administration remains opposed to refunds and could try to delay the process in court. While small businesses that import materials and goods directly from other countries may soon be eligible for refunds through CBP, millions of small businesses that have absorbed tariff costs indirectly via their domestic suppliers remain without relief.
What you can do now
If your business is a direct importer that pays tariffs to CBP, now is the time to prepare for potential refunds by ensuring you are registered with the CBP’s Automated Commercial Environment (ACE) system and gathering all relevant import records. You can also contact a reputable tariff broker for guidance on the refund process and review your current sourcing and supply chain to identify which goods are subject to existing or new tariffs. Finally, as we continue to advocate for small businesses affected by tariffs on direct imports and increased costs in the supply chain, consider sharing your story with us to help highlight how tariffs are impacting Main Street today.