27.02.2026

US tariffs, the US Supreme Court Decision of 20 February 2026 and possible reimbursements for European suppliers and exporters

[Translate to English:] US-Zölle, die Entscheidung des US Supreme Courts

The US Supreme Court struck down on 20 February 2026 the tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Please read our blogpost below on the implications of the decision and practical recommendations on what European companies and exporters should do now.

Ever since the beginning of Trump’s second presidency, starting in January 2025, suppliers of goods to the US were concerned about the imposition of tariffs by the new US administration.

On February 20, 2026, the U.S. Supreme Court handed down a seminal ruling that curtails the president’s role in shaping U.S. trade policy and in particular his authority to enact tariffs. The Court held that the International Emergency Economic Powers Act (IEEPA) does not empower the president to unilaterally impose customs duties. In a 6–3 decision, the justices determined that Congress did not transfer a general tariff‑setting authority through IEEPA and that the power to levy duties remains lodged in Congress under Article I, Section 8 of the Constitution. Hence, tariffs imposed by the IEEPA are invalid. US tariffs imposed on the basis of Section 232 of the Trade Expansion Act of 1962 (product-specific national security tariffs) and duties imposed under Section 301 of the Trade Act of 1974 to counter unfair foreign trade practices are not subject to the Court’s decision and therefore remain valid.

The court’s reasoning is based on wording and structure of the IEEPA and systemic arguments on the balancing of power and the delegation of authority by Congress to the US President. The IEEPA does not make any reference to tariffs or duties at all, which goes against the principle that such a broad delegation of power has to be explicitly provided for. The Court dismissed the government’s contention that the statute’s grant of power to “regulate” imports implicitly extends to imposing revenue‑generating tariffs, underscoring that Congress has traditionally used clear and specific language when delegating authority of such major economic consequence.

This begs the question of what will happen to the total of USD 100 billion that has already been paid for IEEPA-based tariffs to the US Customs and Border Protection Authority (CBP) and what European suppliers can do now. The Court has left the question open of how the tariffs would be returned.

Practically speaking, a reimbursement will depend on whether the IEEPA-based tariffs have already been paid, which is not the case for imports that have not yet been liquidated. CBP is unlikely to impose the IEEPA tariffs when liquidating pending imports now. US-importers could submit Post‑Summary Corrections for unliquidated entries to exclude the IEEPA component. For imports that have already been liquidated, importers may need to file administrative protests with CBP or seek relief before the U.S. Court of International Trade. However, there is no formal refund process yet in place. It is important that US importers are mindful of the statute of limitations of two years running from the legal imposition of the tariffs for the invocation of their reimbursement claims against CBP.

European and German suppliers of goods subject to US tariffs should assess whether they may have reimbursement claims, either against their US customer or CBP.

In order to do so, suppliers should check first whether they were under a duty to pay US customs or duties for goods they exported to the US on the basis of the underlying contractual agreement. This is oftentimes determined on the basis of the Incoterms used. If this is not the case, the US Supreme Court decision has no impact for them and may only entitle the US importer to reimbursements.

Should the underlying contractual agreement provide for a payment of the US customs or duties by the European or German exporter, whether in total or in parts, the suppliers should assess whether their products supplied to the US were subject to the IEEPA-based tariffs or not.

Should they be subject to the IEEPA-based tariffs, German and European suppliers should request from their US customer repayment of excess US tariffs paid.

If you were under the obligation to pay the IEEPA-based tariffs for your shipments to the US, please reach out so that we advise you on the next recommendable steps.

Dr Alexander Ehrle
Partner
Frankfurt a.M., Brussels
alexander.ehrle@luther-lawfirm.com
+49 69 27229 20065

Dr Steffen Gaber, LL.M. (Sydney)
Partner
Stuttgart
steffen.gaber@luther-lawfirm.com
+49 711 9338 19192

Dr Johannes Teichmann
Partner
Frankfurt a.M.
johannes.teichmann@luther-lawfirm.com
+49 69 27229 26475