IEEPA Struck Down: What Section 122 Means for Florida Importers
On February 20, 2026, the Supreme Court ruled 6–3 that IEEPA cannot be used to impose broad import tariffs. Four days later, Congress enacted Section 122 — a 10% global surcharge. If you are still calculating duty with IEEPA rates, your landed costs are wrong.
Action required
If your ERP, customs broker, or spreadsheet still references IEEPA or any rate above 10% for a general surcharge, update it immediately. Section 122 took effect February 24, 2026.
What the Supreme Court actually ruled
In Learning Resources, Inc. v. Trump, the Supreme Court held 6–3 that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose broad, indefinite import tariffs as a response to trade deficits or general economic competition from foreign nations.
The majority opinion, written by Chief Justice Roberts, applied the major questions doctrine — the same doctrine used in West Virginia v. EPA (2022). The Court found that an action of this economic significance requires clear congressional authorization. IEEPA's “unusual and extraordinary threat” language, the Court held, was not that authorization.
The ruling invalidated the April 2025 executive orders that imposed the 10–145% IEEPA tariff schedule, effective immediately upon issuance on February 20, 2026.
What Section 122 is — and how it differs from IEEPA
Congress moved quickly. Section 122 of the Trade Act of 1974 — a statute that has existed for over 50 years but has rarely been used — authorizes the President to impose a temporary import surcharge of up to 15% for up to 150 days, provided Congress is notified within 15 days.
The current Section 122 surcharge was signed February 24, 2026 and is set at 10% across all imports, with no country-specific carve-outs. At 150 days, the statutory expiration falls around July 24, 2026. An extension or replacement statute is possible before that date.
| Factor | IEEPA (struck down) | Section 122 (current) |
|---|---|---|
| Legal authority | Presidential executive order | Act of Congress, 19 U.S.C. § 2132 |
| Rate (general) | 10% baseline, up to 145% (China) | 10% flat, all countries |
| China-specific | 145% IEEPA surcharge | 10% (same as all countries) |
| Effective date | Apr 5, 2025 (struck down Feb 20, 2026) | Feb 24, 2026 |
| Expiration | Indefinite (until struck down) | ~Jul 24, 2026 (150-day limit) |
| Congressional role | None — unilateral EO | Notification required within 15 days |
How your duty stack changes
The structure of the US duty stack is the same — it just has a different line in the middle. Replace every IEEPA reference with Section 122 at 10%. Here is how a typical calculation changes:
Before (IEEPA — invalid)
Example: Laptops from China, $50,000 CIF
After (Section 122 — current)
Same shipment: Laptops from China, $50,000 CIF
Note: Section 301 rates (7.5–25% depending on the HTS chapter) remain in force — they were authorized separately by USTR and are not affected by the IEEPA ruling. Section 232 steel and aluminum duties (now 50%) also remain unchanged.
What this means for Florida importers specifically
Florida's four major ports — Port of Miami, Port Everglades, Port Tampa Bay, and JAXPORT — handle an enormously diverse mix of goods: electronics, apparel, cut flowers, consumer goods, vehicles, steel, and perishables. The IEEPA ruling has different practical implications depending on your primary sourcing country.
Massive reduction. China sourcing economics have changed significantly. Reassess any nearshoring decisions made under IEEPA assumptions.
Section 122 applies universally. USMCA and CAFTA-DR partners are generally not exempt from the 10% surcharge unless FTA terms specify otherwise.
Verify your USMCA certificates of origin are current and that your goods truly qualify — CBP scrutiny has increased.
Florida's largest CAFTA-DR corridor. CAFTA goods from DR, Honduras, and El Salvador remain strong value given Section 122 applies only to non-qualifying content.
What to update in your operations right now
Frequently asked questions
Does Section 122 apply to goods already in transit when IEEPA was struck down?
CBP has issued guidance treating the IEEPA ruling as prospective — goods that entered US customs territory before February 20, 2026 were assessed under the IEEPA schedule in force at entry. Goods entering on or after February 24, 2026 are assessed under Section 122. Work with your customs broker on any entries in a gray window between Feb 20–24.
Are USMCA-qualifying goods exempt from Section 122?
It depends on the goods and the FTA terms. Goods that fully qualify under USMCA Rules of Origin and are properly documented pay 0% MFN duty and are MPF-exempt. The Section 122 surcharge applies broadly, but FTA-qualifying goods may receive favorable treatment. Confirm with your broker for your specific HTS codes.
Will Section 232 steel and aluminum duties go away too?
No. Section 232 duties (currently 50% on steel, 50% on aluminum as of June 2025) are separately authorized under the Trade Expansion Act of 1962 and were not affected by the IEEPA ruling. They remain in force.
What happens when Section 122 expires in July 2026?
Congress can renew Section 122, pass a new tariff statute, or let the surcharge expire and return to MFN-only rates for the general surcharge. This is a significant policy decision. Monitor Federal Register notices through thetariffdesk.com/tariff-updates for early indicators.
Is Section 301 still in effect for China?
Yes. Section 301 duties (7.5–25% depending on HTS chapter, authorized by USTR) are completely separate from IEEPA and were not affected by the ruling. China-origin goods still carry the Section 301 surcharge on top of MFN and Section 122.
Get the correct 2026 duty stack for any HTS code
The Tariff Desk calculates MFN + Section 301 + Section 122 + Section 232 + ADD/CVD + MPF + HMF for every shipment. Updated for the post-IEEPA environment.