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Edit: Originally published on June 24, 2026. Updated to reflect new Section 301 duties, the expiration of the Section 122 surcharge, and new Section 338 duties affecting certain Canadian imports.
Recently, attention has moved from the legal challenge under the International Emergency Economic Powers Act (IEEPA) to how replacement tariff authorities, refund processes, and enforcement actions will affect import costs and compliance.
Importers now face several key questions:
At the same time, tariff policy is influencing working capital, sourcing strategy, pricing, and governance, making it a compliance issue as well as a financial and operational priority.
The most consequential change remains the end of tariffs imposed under IEEPA. In February 2026, the U.S. Supreme Court held that IEEPA does not authorize the President to impose tariffs. Since then, importers have focused on (1) pursuing refunds for previously paid duties and (2) assessing exposure under replacement tariff authorities. While the legal question may have been answered, the operational work continues at the entry level, where outcomes depend on status, documentation, and timing.
U.S. Customs and Border Protection (CBP) has begun processing IEEPA tariff refunds through the Consolidated Administration and Processing of Entries (CAPE) tool in the ACE Secure Data Portal. Current guidance limits Phase 1 to certain unliquidated entries and entries within 80 days of liquidation, with additional phases under development. Timelines and outcomes vary by entry, making entry status, reconciliation posture, and supporting records central to refund eligibility and processing.
Section 122 of the Trade Act of 1974 served as the interim framework, following the repeal of the IEEPA tariffs, supporting a temporary 10% import surcharge from February 24 through July 24, 2026. Although the surcharge has now expired, its sunset coincided with the implementation of new Section 301 duties, illustrating how one tariff authority can quickly be replaced by another.
The Administration is directing tariff policy toward Section 301. On June 2, 2026, the U.S. Trade Representative (USTR) issued findings in 60 Section 301 investigations on failures to impose and effectively enforce prohibitions on imports produced with forced labor.
Effective July 24, 2026, additional Section 301 duties of 10% and 12.5% apply to goods from covered economies. Unlike prior targeted Section 301 actions, these duties apply broadly across HTSUS Chapters 1–97, with relief provided through specific product and program carve-outs rather than lists of covered products. A limited in-transit exemption closes July 28, 2026.
For many importers, one broad-based tariff measure ended as another began, with Section 301 emerging as a more established and durable trade-policy framework than the IEEPA authority invalidated earlier this year.
The Administration has also turned to another, far less frequently used tariff authority. On July 20, 2026, the President signed three proclamations under Section 338 of the Tariff Act of 1930, imposing an additional 50% duty on specified Canadian dairy, alcohol, and motor vehicle goods beginning August 19, 2026.
Unlike the Section 301 action, these duties are tied to Canadian-origin products identified in specific annexes. However, their impact may be broader than many importers expect. Products otherwise eligible for preferential treatment under USMCA remain subject to the additional 50% duty, as the proclamations provide no USMCA carve-out. Products already subject to Section 232 duties are excluded from the new measure.
The vehicle and alcohol annexes cover hundreds of tariff classifications beyond traditional automotive and beverage categories, potentially affecting a much wider range of businesses. Manufacturers and distributors with Canadian sourcing should review whether any imported SKUs will be affected before the August 19 effective date.
On June 1, 2026, the Administration adjusted Section 232 tariffs for aluminum, steel, and copper. These updates include:
These changes may provide relief for some importers but increase documentation expectations. Bills of material, origin data, and credible support for U.S.-content calculations determine eligibility for reduced treatment.
On June 3, 2026, the White House issued Executive Order “Strengthening Customs Enforcement,” directing the Department of Homeland Security (DHS) and CBP to revise importer-of-record standards, expand disclosure expectations, raise scrutiny of foreign importers, strengthen vetting and ‘good standing’ rules, increase audits, and revise mitigation standards, including a minimum penalty floor for customs violations within 90 days.
In other words, more targeted tariff exposure in one area may arrive alongside significantly higher compliance risk in another, with greater expectations for transparency, substantiation, and accountability.
Legal change, refund opportunities, expanding tariff exposure, and stronger enforcement limit the value of a reactive approach. Importers that wait for the next proclamation or lawsuit may miss the larger issue that current tariff policy rewards organizations that connect legal developments to landed-cost modeling, customs data hygiene, supplier strategy, and governance. The most prepared companies entering the second half of 2026 know their data, understand their entry history, and have a disciplined plan for multiple scenarios.
This year’s tariff policy is being driven by litigation, executive action, agency implementation, and enforcement strategy. This environment places greater demands on importers but creates opportunities for cash recovery, improved classification, stronger origin substantiation, and smarter sourcing decisions.
Elliott Davis helps importers connect tariff changes to landed-cost modeling, customs data integrity, and sourcing strategy. Our team identifies refund opportunities, evaluates exposure under current and proposed tariff authorities, and strengthens documentation and governance to support compliance and decision-making.
This article is provided for general informational purposes only and does not constitute legal, tax, or customs advice. The tariff and enforcement developments described above are evolving and should be evaluated against each company’s specific facts, entry profile, and sourcing structure.
