Following the Supreme Court's decision (Learning Resources Inc. et al. v. Trump) on February 20 that the International Emergency Economic Powers Act (IEEPA) does not provide authority to impose tariffs, the Trump Administration took a number of actions amending previous executive orders, imposing new tariffs under Section 122 of the Trade Act of 1974, and detailing investigations that may be forthcoming under Section 301 of the Trade Act of 1974. The White House issued a Fact Sheet detailing these new actions.

President signs Executive Orders lifting IEEPA tariffs but continuing de minimis suspension

President Trump signed an Executive Order stating that the Canada, Mexico, China, global, and country-specific tariffs are no longer in effect and that CBP should end collection of the tariffs "as soon as practicable." While it lifts the tariffs, the Order also makes clear that the national emergencies declared pursuant to the previous executive orders (EOs) "remain in effect and shall not be affected by this order."

Operationally, U.S. Customs and Border Protection (CBP) will need to update the tariff tables (HTSUS) to cease the application of tariffs. On February 20, CBP sent a notice to importers stating that the agency "is working with other government agencies to fully examine the implications of the SCOTUS decision" and "will provide additional information and technical guidance for ACE [Automated Commercial Environment] filers as soon as it becomes available."

With this in mind, President Trump signed another Executive Order continuing the suspension of the de minimis privilege. The President "determined that it is still necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C), including for shipments sent through the international postal network." The order also clarifies duty rates for international postal shipments.

President issues Proclamation imposing tariffs under Section 122

President Trump also issued a Proclamation detailing a temporary import surcharge of 10 percent ad valorem, on articles imported into the United States, effective February 24, 2026 under Section 122 of the Trade Act of 1974¹ for a period of 150 days (until July 24, 2026). In exercising this authority, the President cited a number of factors leading him to conclude that the United States' balance-of-payments deficit is large and serious; could result in the imminent and significant depreciation of the United States dollar in foreign exchange markets; could endanger the ability of the United States to finance its spending; erode investor confidence in the economy; and distress financial markets. These factors, among others, could "significantly harm United States national interests, including economic and national security interests," prompting the President to conclude that "special measures to restrict imports are required to address those problems."

Importantly, paragraph 14 of the Proclamation outlines exceptions from the tariffs and align closely with those products covered under Annex II under the previous reciprocal or country-specific tariffs and include products such as energy and energy products, pharmaceuticals, certain electronics, passenger vehicles, products covered by Section 232 tariffs, products qualifying under the U.S.-Mexico-Canada Agreement (USMCA), as well as textiles qualifying under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). The Proclamation also includes an exemption for goods that (i) were 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. Notably, while the goods must be entered in privileged foreign status for Foreign Trade Zones, there is not a denial of duty drawback on these tariffs.

Finally, the Proclamation clarifies that the 10 percent tariff will not apply to goods subject to Section 232 tariffs, but it will stack on top of any other applicable duties.

USTR outlines forthcoming Section 301 investigations

U.S. Trade Representative (USTR) Jamieson Greer put out a statement on February 20 reacting to the Supreme Court decision and reiterating the administration's commitment "to continue implementing the President's trade policy." He confirmed that "alternative tools" will be implemented "address many of the issues at the heart of the President's reciprocal tariff program," to include "reducing the U.S. global trade deficit in goods, reversing the lack of reciprocity by our foreign trading partners, and incentivizing the reshoring of production to the United States." He further stated that U.S. trading partners have engaged in "good-faith negotiations and agreements despite the pending litigation" and that the administration is "confident that all trade agreements negotiated by President Trump will remain in effect."

USTR Greer also said that his agency would launch several new investigations under Section 301 of the Trade Act of 1974. In particular, Greer noted the following:

• New 301 investigations are expected to "cover most major trading partners."
• New 301 investigations will "address areas of concern such as industrial excess capacity, forced labor, pharmaceutical pricing practices, discrimination against U.S. technology companies and digital goods and services, digital services taxes, ocean pollution, and practices related to the trade in seafood, rice, and other products."
• Investigations will be conducted on an "accelerated timeframe."²

Greer also noted that USTR would continue ongoing Section 301 investigations involving Brazil and China's implementation of the Phase One Agreement.