As has been reported even in the general press, on Friday, February 20, 2026, the U.S. Supreme Court ("Court") struck down the IEEPA tariffs related to fentanyl on China, Canada and Mexico, and the reciprocal tariffs imposed on most countries based on their balance of trade with the U.S. The Learning Resources - Vos Decision is lengthy because different judges had different reasons for overturning the tariffs. Plus, the dissent is over sixty (60) pages! However, the decision itself tells us little beyond the 6-3 majority overturned the tariffs. The only other point of interest is the case filed in the district court (i.e., Learning Resources) was vacated as the Court held the Court of International Trade ("CIT") was the correct venue. The case brought by Vos and other plaintiffs, along with various U.S. states, was held properly filed at the CIT.
The case was not, for example, remanded to the CIT to require CBP to establish a refund procedure. There was, in fact, nothing said about refunds. So, this leaves the trade wondering what will happen next? We perhaps have as clear a statement as we are going to get, in that Treasury Secretary Scott Bessent stated to CNN the question of the refunds will be left to the courts to decide!
The initial response CBP issued on Friday said nothing more than CBP is aware of the decision and is consulting with other agencies. See CSMS 67823350. Later in the day on the 20th, President Trump held a news conference and announced he would replace the IEEPA tariffs with 10% tariffs imposed under Section 122 of the Trade Act of 1973 (19 U.S.C. 2132). These tariffs are valid for 150 days. However, stating the tariffs will be imposed or issuing a post on Truth Social is not enough. So, by the end of the day, an Executive Order ("EO") was issued. Make sure to review the annexes for which links appear at the end of the EO. There is a clause which defines in-transit goods as those loaded "onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. eastern standard time on February 24, 2026; and (ii) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern standard time, February 28, 2026. [emphasis added.]"
The next step is for the Section 122 tariffs to be published in the Federal Register. After that, we still need to hear from Customs and Border Protection ("CBP"). So, even while the new tariffs follow the process to become binding, it really does all come down to what CBP has to say. Assuming CBP authorizes refunds, which now seems in serious doubt, be prepared to follow whatever procedure is established.
