How Do You Handle The Tariff Whiplash?

Written by James Sanders

The tariff picture has changed three times in less than three months, and the latest twist landed two days ago. On February 20, 2026, the U.S. Supreme Court ruled in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize the President to impose tariffs unilaterally, invalidating the “Liberation Day” reciprocal duties and opening the door to refunds. Within hours, the President invoked Section 122 of the Trade Act of 1974 to impose a new 10% global tariff effective February 24.  On May 7, 2026, the Court of International Trade then declared the Section 122 proclamation invalid as well (though the court stopped short of ordering CBP to halt collections or refund anyone so duties keep flowing while appeals play out). 

If your business imports anything (e.g., finished goods, components, packaging, equipment), then below are some proactive measures that you may want to consider in light of the shifting tariff landscape –  

• First – Inventory every entry that paid an IEEPA tariff in 2025 or early 2026.  
• Second – Preserve your rights now, not later. For entries already liquidated, the protest window is generally 180 days from liquidation, and that clock does not pause because a refund portal exists; many sophisticated importers have also filed protective actions at the Court of International Trade.
• Third – Re-read your supplier and customer contracts. When tariffs hit, many companies invoked pass-through clauses to push the cost downstream — when refunds arrive, those same clauses determine who keeps the money, and disputes are coming.
• Fourth – Do not assume the storm is over. Section 232 duties on steel, aluminum, and pharmaceuticals are unaffected by either court ruling; The administration has previewed Section 301 investigations as a longer-term replacement vehicle.

The legal authority keeps shifting and the cost pressure on imported inputs is not going away. The companies that document every entry, preserve every protest right, and stress-test their contracts have a better chance to get their money back.  The ones that don’t will get caught in the tariff whiplash!