U.S. Supreme Court tariff ruling: Key takeaways for Canadian companies

The U.S. Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. This finding strikes down general tariffs on Canadian goods that do not originate under the Canada-United States-Mexico Agreement (CUSMA). However, it raises questions about the future of U.S. tariffs and recovery of any IEEPA tariffs paid.

The U.S. government has shifted quickly to other statutory tools, including a temporary global tariff, suggesting this decision is not the end of tariff uncertainty. Canadian companies moving goods across the border should continue to consider tariff planning strategies, such as reassessing valuation and classification of goods. Supply chain diversification to decrease reliance on a single market and the associated risk remains a pertinent consideration.

In terms of refunds, no defined process for receiving refunds has been announced, and there is no assurance that one will emerge. Additional complexities may also arise in situations where the importer of record was reimbursed for the tariffs by a customer or other entity. Our trade advisory practitioners are recommending importers:

Understand their IEEPA exposure: Identify which entries were subject to IEEPA-based tariffs, when they were assessed, and liquidation status of those entries. This visibility is essential groundwork for responding effectively once next steps are outlined.

Quantify the potential impact: Document the scale and characteristics of duties paid under the affected programs—by product category, country of origin, tariff action and time period. This analysis will help your business evaluate its options once administrative procedures are defined.

Review agreements: For importers who recovered tariff costs from customers or other entities, review sales agreements to understand your obligations to seek a refund and/or reimburse others should you recover on your tariffs.

Clean, accessible documentation—including entry summaries, payment records and harmonized tariff schedule classifications—will allow businesses to respond efficiently if instructions are issued that affect past entries or if new tariff measures alter trade flows.

Impacted and remaining tariffs on Canadian goods

The IEEPA tariffs applicable to Canadian goods were:

• 10 per cent on non-CUSMA originating energy, energy resources and certain critical minerals
• 35 per cent on all other non-CUSMA originating goods

The following goods, as of writing, are subject to product-specific tariffs under a rule other than IEEPA and were not subject to IEEPA tariffs. These tariffs are unaffected by the Supreme Court decision.

• Steel, aluminum and derivatives
• Non-CUSMA compliant autos/light trucks and non-U.S. content of CUSMA compliant autos/light trucks
• Non-CUSMA compliant auto parts
• Non-CUSMA compliant medium- and heavy-duty trucks and non-U.S. content of CUSMA compliant medium- and heavy-trucks
• Buses
• Copper (except raw materials)
• Softwood timber and lumber
• Upholstered wooden furniture, kitchen cabinets, vanities
• Semiconductors

In response to the Supreme Court decision, the U.S. has imposed a 10 per cent global tariff starting Feb. 24, 2026 and applicable for the next 150 days, unless Congress grants an extension. The tariff does not apply to CUSMA-compliant goods or those subject to product-specific tariffs listed above. President Trump has indicated an intention to increase this tariff to 15 per cent.

Canadian companies importing goods that do not originate in Canada into the U.S. will need to analyze the impact of the Supreme Court decision on their products and operations separately.

How a trade and tariff advisor can help

The administration’s turn to other laws—specifically, sections 122, 301, and 232, and the potential use of other trade authorities—suggests that tariff policy will continue to evolve.

To better position themselves to make informed decisions as this next phase unfolds, importers should assess their historical exposure, prepare their data and monitor agency announcements. An effective response to evolving tariffs requires careful coordination across trade compliance, finance, supply chain and legal teams. A trade and tariff advisor can help companies navigate these demands by providing structure, technical insight and a clear process.

Working with a trade and tariff advisor does not replace legal advice or customs brokerage representation, but it can significantly reduce the burden on internal teams and provide structure needed to respond thoughtfully in a fluid policy environment.