Trump tariffs – what does the Supreme Court judgement mean for UK businesses?

The US Supreme Court has now made their landmark ruling that the Trump administration did not have the authority to impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA).

Also commonly referred to as ‘global’ or ‘reciprocal’ tariffs, this legislation resulted in many UK origin goods suffering an additional duty of 10% when imported into the US, while goods manufactured in other countries attracted far higher rates.

The ruling means that the IEEPA tariffs are illegal and unenforceable. US Customs and Border Protection (US CBP) must now stop applying the tariffs at the border.

The immediate response from the US administration has been to introduce a new 10% tariff which can remain in place for up to 150 days without Congressional approval.

Shortly after announcing the new tariff, Trump announced he would be immediately amending this to 15%. However at the time of writing, no further official policy amendments have been enacted. If the tariff does rise to 15%, this will mean many UK origin goods will attract a higher rate of duty than before the US Supreme Court ruling, at least temporarily.

Who should consider the Trump tariffs ruling?

• Businesses importing goods into the US
• Businesses exporting goods to the US
• Companies paying US customs duty on behalf of customers or absorbing the costs in their pricing
• Groups with US subsidiaries or branches that import goods

The US Importer of Record will be the eligible party for the refunds. However, the final eligibility and process is yet to be finalised.

Tariff collection, protests, claims and refunds

If you have acted as the importer of record of goods imported into the US, you should consider gathering evidence, if you have not already done so.

Refund claims must currently be made via a protest (US terminology) to US CBP. This should be filed as soon as possible to preserve eligibility. Under existing rules, protests must be filed within 180 days of liquidation. Some US businesses have already filed protective protests or launched litigation.

Many of the previously collected tariffs are expected to qualify for refund, with estimates suggesting at least $135 billion may be eligible. While existing amendment and protest processes remain available, the scale of the expected refunds may prompt further US Government action and guidance including:

• Whether a specific IEEPA refund mechanism will be introduced
• Whether additional litigation will be needed
• Whether Congressional involvement will be required

Other tariffs

The ruling does not eliminate all the US additional tariffs. The US Supreme Court ruling only effects tariffs enacted using IEEPA. Product specific (section 232) tariffs will continue to apply to goods in a range of sectors including: Steel and aluminium, copper, softwood timber, certain furniture, certain vehicles and parts etc. The US has been expanding the list of goods tariffed using this legislation and the ruling may result in further expansion.

New 10% tariffs (with possibility to rise to 15%)

Following the Supreme Court ruling, President Trump has announced a new 10% tariff on all countries, invoking section 122 of the Trade Act of 1974. The new tariff was enacted on 24 February 2026. This legislation has not been previously used by the administration and allows the President to impose the tariff to address balance of trade concerns, without declaring a national emergency. However, this can only be imposed for 150 days without Congressional approval.

Originally announced as a 10% additional tariff in a White House Proclamation on 20 February 2026, a Truth Social statement on 21 February 2026, stated this would be revised to 15% increase would take effect immediately. However as of 24 February 2026, the rate remains at 10% for now.

The new additional duty is expected to apply from 24 February 2026 and last until at least 150 days (24 July 2026) unless changed or extended by Congress.

A long list of exceptions has been announced, covering categories where the new duty will not apply. These include, but are not limited to:

• Goods already subject to section 232 product-specific tariffs
• Pharmaceuticals and pharmaceutical ingredients
• Certain aerospace products
• Certain electronics
• Passenger vehicles and specific automotive parts
• Fertilisers
• Other goods deemed critical or lacking adequate US domestic supply

Exceptions remain subject to clarification as implementing documents are released.

Higher tariffs for UK origin goods after the Trump tariffs ruling

UK exporters should be aware that although the IEEPA-based 10% tariff is now invalid, the new 15% Section 122 tariff is expected to apply to most UK-origin goods entering the US for the next 150 days. This represents a higher additional duty than the previous IEEPA measure.

Given the UK’s previous negotiations with the US, the UK Government will be keen to preserve the UK’s relatively ‘preferential’ position compared to other countries. However, no specific exemptions for UK goods or traders have been announced to date.

How we can support you?

The PKF Francis Clark Customs team can support you with:

• Quantifying duties paid under the invalidated tariff
• Collecting the evidence required for refund claims
• Supporting protests to CBP
• Understanding the broader implications of the ruling on your supply chains and sales

If you would like any assistance, please do get in touch at: [email protected]