Tariff Resource Center

Tariffs are assessed on imported products and are a source of revenue for the U.S. government. They can also be used as an incentive for domestic businesses to purchase goods made in the U.S. Additionally, various laws allow the president to impose tariffs to respond to specific international trade and market conditions.

Tariffs can be categorized primarily into two types:

• Ad Valorem Tariffs (most common): These are calculated as a percentage of the declared customs value of the goods.

• Specific Tariffs: These are assessed as a fixed amount per unit of imported merchandise, such as $0.50 per kilogram.

The applicable tariff for a product varies depending on the type of product and its country of origin.

On Feb. 20, 2026, in a 6-3 decision, the Supreme Court struck down the president’s authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). This includes all of the administration’s “reciprocal” tariffs rolled out in April 2025 in which a 10% baseline tariff was imposed on all WTO members, additional higher tariffs were imposed at varying levels by country, and certain tariffs were directed at China, Mexico, Canada and others related to fentanyl. These tariffs are now unlawful.

Following the Supreme Court's ruling, the administration pursued additional tariff actions under other statutory authorities. A temporary 10% tariff imposed under Section 122 of the Trade Act of 1974 expired on July 24, 2026. The administration has also continued pursuing tariffs under Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974. These actions are separate from the IEEPA tariffs addressed by the Supreme Court and are subject to different legal requirements and procedures.

While the Supreme Court did not address refunds directly in its decision, it did send the issue back to the U.S. Court of International Trade (CIT), where the case originated. Subsequently, on March 5, 2026, the CIT ordered the Trump Administration to calculate duties owed absent the invalidated IEEPA tariffs and directed that with interest. U.S. Customs and Border Protection developed a system, Consolidated Administration and Processing of Entries (CAPE) to take requests for refunds and is being rolled out in phases. The agency began accepting limited requests on April 20, 2026. On June 29, 2026, CBP broadened eligibility for the CAPE refund process by allowing certain import entries that are still awaiting reconciliation to be submitted for IEEPA tariff refunds. This expansion may create refund opportunities for importers that were not eligible under the initial rollout. These initial phases only cover entries not yet liquidated or those liquidated within the 80 days preceding the April 20 opening of the CAPE system. Future phases may extend eligibility to older entries and more complicated cases.

Practitioners with clients affected by the invalidated IEEPA tariffs should consider discussing potential refund opportunities with the client's customs broker, international trade advisor, and/or legal counsel. Given the evolving litigation and refund procedures, affected importers may benefit from reviewing prior entries to determine whether claims should be submitted through the CBP refund process.

Various legislation allows for the imposition of tariffs including:

• Section 301 of the Trade Act of 1974 allows for the President to impose restrictive measures, such as additional tariffs, when the U.S. International Trade Commission concludes that an increase in imports is a substantial cause or threat of serious injury to a domestic industry. Also, when it is determined that the actions violate an international trade agreement or are unjustified, unreasonable, or discriminatory, and that burden or restrict U.S. commerce, retaliatory tariffs can be imposed.

• Section 232 of the Trade Expansion Act of 1962 allows for the President to impose tariffs based on a recommendation from the U.S. Secretary of Commerce if "an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security”.

• IEEPA of 1977 authorizes the President to address “any unusual and extraordinary threat…to the national security, foreign policy, or economy of the United States.” President Trump previously invoked IEEPA to impose a 10% tariff on imports from all countries, with higher reciprocal tariffs on countries with which the United States had significant trade deficits. However, recently in Learning Resources, Inc. v. Trump, the U.S. Supreme Court ruled that IEEPA does not authorize the President to impose tariffs, holding that such authority rests with Congress unless expressly delegated by statute. As a result, importers are in the process of applying for retroactive IEEPA tariff refunds.

• Section 122 of the Trade Act of 1974 also permits temporary tariffs on nations to address balance-of-payments crises.

• Anti-Dumping Duties (ADD) are assessed against certain products from select countries to remedy unfair trade practices, whereby imported products are being offered below the fair market value or “dumped” into the U.S.

• Countervailing Duties (CVD), similar to ADD, are used to protect domestic manufacturers from foreign manufacturers who are offering products below the fair market value. However, CVDs are specifically used when products are being imported from foreign manufacturers below fair market value due to a foreign government subsidy.

All tariffs/duties are individually associated with over 17,000 unique, 10-digit customs classifications in the Harmonized Tariff Schedule of the U.S. (HTSUS) which is maintained by the U.S. International Trade Commission.