Tariffs Briefing
FEBRUARY 23, 2026 - IMPACT OF SUPREME COURT TARIFF RULING
GEORGIA CHAMBER OF COMMERCE
Impact of Supreme Court Tariff Ruling
The Latest
On Friday, February 20th, the Supreme Court issued its opinion in Learning Resources, Inc. v. Trump, ruling in a 6-3 decision that the International Emergency Economic Powers Act (IEEPA) does not authorize the executive branch to set tariffs. This follows the Trump Administration’s use of IEEPA authority in February of 2025 to impose tariffs on Canada, Mexico, and China in response to several declared national emergencies regarding fentanyl trafficking.
On April 2nd, 2025, Trump announced further “Liberation Day” tariffs under IEEPA authority on a wide assortment of countries, declaring an economic emergency due to numerous trade deficits their threat to national security. Since their announcement and implementation in July of 2025, the Trump Administration negotiated executive branch trade deals with several trading partners, but these trade deals were never formalized through congressional approval.
Why This Matters
Since the beginning of last year, more than $200 billion in tariffs have been collected. With the authority under which many of these collections from American businesses struck down, there are now questions regarding potential refunds. While the Supreme Court itself remained silent on the requirement or method for doing so, the Trump Administration previously stipulated during briefs and arguments to the Court that if tariff authority under IEEPA was found illegal, the government would be required to refund all tariff duties collected pursuant to IEEPA and reliquidate all seized merchandise still held subject to those tariffs.
Given the Supreme Court has returned the case to the lower courts with instructions for the court to proceed with their instructions, more information will be available in the coming days and weeks regarding any potential action on refunds that could be secured from U.S. Customs and Border Protection.
Strategic Considerations for Georgia Businesses
With many tariffs on domestic importers struck down, the current global trade environment is in flux. This weekend, President Trump enacted a 10%, and then 15% global tariff under Section 122 of the Trade Act of 1974. This legal provision allows the President to impose up to 15% baseline tariffs and puts a 5-month limit on its use.
Under this current policy, allies like the U.K., EU, Japan and South Korea face trade-weighted tariff increases under Trump’s new 15% global duties. Others, like China, are set to see sharp reductions after the Supreme Court struck down IEEPA - based levies.
Administration officials, including President Trump himself, have repeatedly stated that the striking down of
IEEPA tariff authority would not mean the end of their tariff implementation strategy. While these options require more administrative process and allow for less spontaneous implementation of tariffs, they remain options for the Administration to pursue.
While the vast majority of goods coming from Canada and Mexico were already exempted from IEEPA tariffs as long as they were qualified under the USMCA agreement, deals negotiated under the threat of IEEPA tariffs with countries like South Korea, India, and others may change rapidly in the coming weeks.
Continued engagement with state and federal lawmakers remains vital. The Georgia Chamber of Commerce continues to advocate for our members with Georgia’s Congressional delegation.
Detailed Georgia Trade Overview
The following are some of the trade agreements with Georgia’s top trading partners impacted by the Supreme Court decision and subsequent Global Tariff.
U.S., CANADA & MEXICO
The White House clarified that USMCA exemptions will continue with the new tariff rate. About 85% of Mexican exports to the United States are exempt from tariffs because of the United States-Mexico-Canada Agreement. The three-way pact is scheduled for joint review starting July 1.
EUROPEAN UNION
The European Union’s parliament halted the ratification process of the previously agreed upon trade deal. Last year’s trade deal set a 15% U.S. tariff rate for most EU goods, apart from those covered by other sectoral tariffs, such as on steel. It also allowed zero tariffs on some products, such as aircraft and spare parts, and it is possible that this new tariff could be placed on these products.
The previous trade agreement set tariffs at 15%, meaning their agreement is temporarily maintaining the same at present. Last week, Japan committed $36 billion in investments in the United States.
CHINA
Previous negotiations with China have stalled, meaning it is likely they will get a better deal than previously expected, with them retaining the same 15% with other nations.
JAPAN
SOUTH KOREA
South Korea’s trade agreement set a 15% reciprocal tariff on South Korean imports, with South Korea providing roughly $350 billion of investment in the United States in exchange for reduced U.S. tariffs on Korean goods. As of Friday, February 20th, South Korean officials have still asserted that the trade deal negotiated under IEEPA tariff authority remains intact.
INDIA
Negotiations scheduled to occur this week have been rescheduled due to evolving conditions. India was facing a 25% reciprocal tariff, which was expected to be cut to 18%.
Top Trading Partners by Total Trade (2024)
Sources
Some U.S. allies see higher duties under new tariffs, rivals see relief, trade body says - CNBC
EU says it will accept no increase in US tariffs after Supreme Court ruling: ‘a deal is a deal’ - Rueters
They Did Deals With Trump to Get Lower Tariffs. Now They Are Stuck. - NY Times
India delays Washington trade visit as U.S. tariff policy shifts, source tells CNBC - CNBC
White House Exempts Mexico, Canada From New 10% Tariff - WSJ
Supreme Court ruling against Trump’s tariffs leaves Mexico in cautious wait-and-see mode- LA Times
Canada looks to trade talks after US Supreme Court tosses Trump’s tariffs- BBC
Trump’s New Trade Agenda Is on a Collision Course With Midterms - WSJ
