USA Introduces Temporary Import Duty Following Supreme Court Ruling Amid Uncertain Outlook

The U.S. Supreme Court has ruled that tariffs imposed on the basis of the IEEPA (International Emergency Economic Powers Act) are unlawful. The decision concerns the interpretation of presidential powers and states that the IEEPA does not provide a legal basis for the imposition of tariffs.

In response to this decision, the President of the United States issued a proclamation introducing a 10% import surcharge on selected products for a period of 150 days, on the basis of Section 122 of the Trade Act of 1974 (19 U.S.C. 2132). This provision allows the President to adopt temporary measures in the form of import surcharges or other restrictions with the aim of addressing fundamental problems in the area of international balance of payments.

Some products are excluded from the 10% surcharge regime, including, among others, critical raw materials, pharmaceuticals, passenger cars and certain types of trucks, selected electronics, and products of the aerospace industry (see the annexes to the proclamation).

The measure applies to goods released for free circulation or withdrawn from a customs warehouse for consumption from 24 February 2026 (00:01 EST) and is to remain in force until 24 July 2026 (00:01 EDT), unless it is suspended, amended or terminated earlier, or extended by a decision of Congress.

The new measure does not apply to products subject to measures under Section 232, which were not affected by the Supreme Court’s decision.

The Office of the United States Trade Representative (USTR) has at the same time announced its intention to initiate an investigation under Section 301 with the aim of creating a more stable legal basis for any additional tariffs. This step introduces another element of uncertainty, as any measures are not covered by the existing agreements of the United States with key trading partners, including the EU.

The White House has also adopted an executive order by which it continues the suspension of the so called “de minimis” rule, i.e. the duty free regime for low value shipments.

Impact on the EU–U.S. framework agreement

The President of the United States and the USTR have stated that they consider trade agreements concluded after 2 April to be valid and expect them to be respected by partners. According to available information, the European Commission is in contact with the U.S. administration with the aim of clarifying the full impacts of the Supreme Court’s decision and the subsequent U.S. steps on the Joint EU–U.S. Framework Agreement.

At the same time, the European Parliament’s Committee on International Trade was, in the coming days, to discuss legislative proposals related to the implementation of the agreement on the EU side, in particular as regards improving access of U.S. industrial and agricultural products to the European market.

Position of European industry

The Confederation of European Business, BusinessEurope, states the following on the situation:
“We take note of the US Supreme Court decision to consider that tariffs applied based on IEEPA are illegal. We will need to assess carefully the full implications of the US Administration decision to use Section 122 to impose a 10% duty and in parallel open Section 301 investigations. We will be in close contact with the European Commission to understand the full implications of these decisions and their consequences on the EU-US Joint Framework Agreement. European business wants stability and predictability in the Transatlantic relationship. Considering the sheer volume and importance of Transatlantic trade, our main priority has always been to reduce tariffs and the cost for business on both sides of the pond.”

Further developments

Meanwhile, President Trump announced on Saturday his intention to increase the new duty to 15%, but no official document confirming this change has yet been published. On Sunday, 23 February, a statement was issued that until 24 July tariffs at the level of 10% will remain in force, while the U.S. administration is considering how to implement 15% from a legal perspective. If implemented, this would in practice mean that our exports to the US would face higher duties than those agreed under the EU–US Joint Framework Agreement.

The Confederation of Industry of the Czech Republic continues to monitor the situation closely together with BusinessEurope and, in coordination with the European Commission and the Ministry of Industry and Trade of the Czech Republic, will assess further EU steps in response to developments in the United States.