IEEPA and Section 122 Tariffs
The most significant recent development in tariffs was the US Supreme Court’s rejection of the President’s IEEPA tariffs holding that IEEPA did not authorize the President to impose tariffs. This ruling invalidated tariffs imposed in early 2025 on virtually every country.
After the IEEPA ruling, the President then issued a Presidential Proclamation under Section 122 of the Trade Act of 1974 imposing a 10% ad valorem duty on all imports into the U.S. The Court of International Trade ruled on May 7, 2026, that Proclamation No. 11012 was ultra vires because the Proclamation identified trade deficits and current account deficits, but nowhere identified balance-of-payments deficits within the meaning of Section 122 as Congress understood that term in 1974 — measured by liquidity, official settlements, and basic balance. The court declared the tariffs unauthorized by law and entered permanent injunctive relief for the importer plaintiffs. These rulings do not alter Section 232 or Section 301 tariffs, which remain in effect.
Refund Process
Following the Supreme Court's ruling, the Court of International Trade ordered Customs and Border Protection to liquidate without regard to IEEPA duties all unliquidated entries subject to IEEPA duties, and to reliquidate without regard to IEEPA duties any liquidated entries for which liquidation was not yet final. The court acknowledged CBP's ongoing efforts to develop the technical functionality to process refunds, noting significant delays before refunds are effectuated.
Importers can claim refunds through CBP’s Consolidated Administration and Processing of Entries (CAPE) within ACE.
- The importer of record or their broker must submit a list of affected entries via the CAPE portal;
- CAPE checks the entries, removes IEEPA-related provisions, recalculates the duties owed and determines refund amounts;
- Entries are liquidated or reliquidated reflecting the removal of IEEPA duties;
- Overpaid duties are refunded via ACH to the importer of record or designated payee.
Action Items for Importers
- Identify affected entries;
- Coordinate broker submission in CAPE;
- Verify ACH designations;
- Monitor CBP liquidation/reliquidation timelines given expected delays.
Section 232 and 301 Tariffs
Currently, Section 232 steel and aluminum tariffs — (aluminum, 10%) and (steel, 25%) beginning in March 2018 under the Trade Expansion Act of 1962 — remain in effect under separate statutory authority. Also, Section 301 tariffs on Chinese goods, imposed under the Trade Act of 1974 and upheld in prior litigation, also remain in effect.
A presidential proclamation effective April 6, 2026 overhauled Section 232 tariffs on steel, aluminum, and copper:
- Tariffs assessed on the full customs value for all covered articles and derivatives;
- creating a tiered structure across five Categories of steel, aluminum and copper items.
- duties will not stack for derivative products listed under multiple Section 232 metals actions and supersedes the prior methodology that applied duties only to the steel content of an article.
- Tiered structure across five Categories spanning steel, aluminum and copper;
- Rates include:
- 50% ad valorem rate on primary metal products and certain closely related derivatives,
- 25% for certain copper articles and select aluminum/steel derivatives not at the full 50% rate,
- temporary combined 15% rate through Dec. 31, 2027 for specified metal-intensive industrial and grid equipment, shifting to 25% thereafter; and
- 15% de minimis weight threshold for products outside Chs. 72, 73, 74, and 76. If the Most Favored Nation rate is already at or above 15%, no additional Section 232 duty applies during the temporary period.
232 Investigations
There are currently three active 232 investigations:
- Critical Minerals Investigation - Initiated under Executive Order 14193, the Commerce Department is investigating processed critical minerals and their derivative products. This covers minerals on the USGS Critical Minerals List plus uranium, focusing on supply chain vulnerabilities where foreign producers control significant global capacity.
- Timber and Lumber Investigation - Launched under Executive Order 14194, this investigation examines timber, lumber, and derivative products including paper, furniture, and cabinetry. The administration cited concerns about foreign dumping and subsidies threatening the domestic wood products industry, which it considers essential for construction and national security.
- Copper Investigation - Initiated under Executive Order 14195, Commerce is investigating copper, scrap copper, and copper derivative products. The order highlighted that a single foreign producer dominates over 50% of global copper smelting capacity, creating supply chain vulnerabilities for defense applications, infrastructure, and clean energy technologies
Whether other authorities (e.g. Section 201 or 301) — could support additional broad tariff regimes remains open and is likely to see further executive action and litigation.
If you have any questions regarding the above, please contact Dino Vasquez.
This article is provided for informational purposes only—it does not constitute legal advice and does not create an attorney-client relationship between the firm and the reader. Readers should consult legal counsel before taking action relating to the subject matter of this article.
