The United States officially terminates fentanyl and equivalent tariffs under the IEEPA framework

Pursuant to an official notice issued by U.S. Customs and Border Protection (CBP) via Cargo Systems Messaging Service (CSMS #67834313) on February 22, 2026, all additional tariffs imposed under the International Emergency Economic Powers Act (IEEPA) will be formally terminated as of 12:01 a.m. EST on February 24, 2026. This action implements the historic ruling of the U.S. Supreme Court, marking the official end of a series of trade measures—including the Trump administration’s “reciprocal tariffs” against multiple countries and the so-called “fentanyl tariffs”—that were based on emergency economic powers.

I.Legal Ruling: Supreme Court Finds Presidential Overreach

The direct legal basis for this policy shift is the U.S. Supreme Court’s ruling issued on February 20, 2026, by a vote of 6–3. In the majority opinion, Chief Justice John Roberts explicitly held that the IEEPA does not authorize the President to unilaterally impose sweeping tariffs in peacetime. Such actions lack explicit congressional authorization and constitute an overreach of executive authority. The ruling determined that tariffs levied by the President under the IEEPA were unlawful ab initio.

II.Specific Tariff Measures Being Terminated

Pursuant to the CBP notice and President Trump’s Executive Order “Ending Certain Tariff Actions” signed on February 20, 2026, tariffs imposed under the following seven IEEPA-based executive orders (including all amendments and corrections) will no longer be in effect:

1.Executive Order 14193: Tariffs imposed to address illicit drug flows across the northern border (primarily with Canada).

2.Executive Order 14194: Tariffs imposed to address border security concerns along the southern border (primarily with Mexico).

3.Executive Order 14195: The so-called 10% tariff imposed “to counter China’s synthetic opioid supply chain” (commonly referred to as the “fentanyl tariff”).

4.Executive Order 14245: Tariffs imposed on countries importing Venezuelan oil.

5.Executive Order 14257: “Reciprocal tariffs” levied to address persistent U.S. trade imbalances, including a 10% rate on Chinese goods (with an additional 24% suspended).

6.Executive Order 14323: Tariffs imposed in response to threats posed by the Government of Brazil to the United States.

7.Executive Order 14329: Tariffs imposed in response to threats posed by the Government of the Russian Federation to the United States.

CBP will concurrently update its Automated Commercial Environment (ACE) system and deactivate all corresponding IEEPA tariff codes in the Harmonized Tariff Schedule of the United States (HTSUS). These tariff lines will automatically cease to be available for entry in customs declarations.

III.Exceptions: Section 232 and 301 Tariffs Remain in Force

CBP explicitly clarified in its notice that this termination applies only to tariffs under the IEEPA framework and does not affect any other tariffs imposed by the Trump administration under alternative legal authorities. The following two core trade protection measures remain fully effective:

Section 232 of the Trade Expansion Act of 1962: National security-based tariffs, primarily targeting steel, aluminum, automobiles, and related products.

Section 301 of the Trade Act of 1974: Tariffs targeting alleged “unfair trade practices,” including the Section 301 tariffs on China implemented since 2018.

IV.Replacement Policy: Swift Introduction of Global Temporary Tariffs

Within hours of the Supreme Court’s ruling, the Trump administration rapidly deployed alternative legal tools. On February 20, 2026, President Trump invoked Section 122 of the Trade Act of 1974 to announce a 10% temporary ad valorem tariff on imports from all countries and regions, effective for 150 days. The following day (February 21), Trump stated via social media that he intends to raise this rate to the statutory maximum of 15%. Per CBP guidance, the rate in effect as of February 24 remains 10%. This provision, never previously invoked, is legally grounded in addressing “serious balance-of-payments problems.”

V.Policy Impacts and Reactions

1.Impact on Global Trade: Oxford Economics estimates that the termination of IEEPA tariffs will reduce the U.S. effective tariff rate from 12.8% to 8.3%. However, the immediate introduction of new global temporary tariffs means overall U.S. tariff pressure has not eased—only the legal pathway has shifted. This has introduced new chaos and uncertainty into the global trading system.

2.Refunds for Paid Tariffs: The Wharton Budget Model at the University of Pennsylvania estimates that the total amount of IEEPA tariffs ruled illegal could exceed $175 billion. While U.S. importers are theoretically entitled to seek refunds, Treasury Secretary Scott Bessant has stated that the refund process could be tied up in litigation for years.

3.International Reactions: The European Union has delayed ratification of its trade agreement with the United States due to uncertainty over U.S. tariff policy. Governments of the United Kingdom, Australia, India, Brazil, and other countries have expressed concern, assessed impacts, or considered countermeasures.

4.Domestic U.S. Reactions: Polls show a majority of Americans support the Supreme Court’s ruling. Hundreds of U.S. companies have filed lawsuits demanding refunds of tariffs already paid.

VI.Next Steps

During the 150-day window of the temporary tariffs, the Trump administration plans to initiate additional Section 232 national security investigations under the Trade Expansion Act of 1962. These investigations may cover six sectors, including batteries, grid equipment, telecommunications gear, and plastic piping, with the goal of establishing more “legally sound” and durable tariff measures.

END

Disclaimer: This article is for informational purposes only. For specific details, please refer to the relevant laws and regulations and the rulings of the competent local authorities. Any dynamic adjustments shall be subject to the official interpretations and announcements of domestic and foreign authorities. Images are sourced from the internet. For any copyright concerns or infringements, please contact us via email at admin@mbs-gz.com. We will promptly remove the relevant content. Thank you.