Economy & public financesUnited States

Struck downReciprocal and fentanyl duties held unlawful (6-3). The same day, Executive Order 14389 ended their collection; Section 232 and 301 duties are not affected.

2025 emergency tariffs (IEEPA): “Liberation Day” reciprocal tariffs and fentanyl duties, struck down by the Supreme Court

In 2025 the President used the International Emergency Economic Powers Act (IEEPA) to impose additional duties: 25% on Canadian and Mexican goods and 10% on Chinese goods over fentanyl flows (February), then a 10% duty on almost all imports plus higher country-specific rates under Executive Order 14257 of 2 April 2025. On 20 February 2026 the Supreme Court held that IEEPA does not authorize the President to impose tariffs. The duties were terminated, refunds to importers began in April 2026, and the administration switched to other legal bases: a temporary 10% surcharge under Section 122, then Section 301 duties from 24 July 2026.

Updated: November 3, 2026

At a glance

Reference text

Executive Order 14257 of April 2, 2025 — Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits[1][2]

No. EO 14257 (90 FR 15041) · April 2, 2025

Read the text ↗

Carried by

  • Donald J. Trump[2][4][5]President of the United States · 2025-2026 · Initiator
  • Supreme Court of the United States[8]Learning Resources, Inc. v. Trump (opinion by Chief Justice Roberts) · 2026 · Suspension
  • U.S. Customs and Border Protection (CBP)[31][12]Collection of the duties, then refunds (CAPE) · 2025-2026 · Implementation

Implementation

Status

Struck down

since February 20, 2026[8][9][10]

Reciprocal and fentanyl duties held unlawful (6-3). The same day, Executive Order 14389 ended their collection; Section 232 and 301 duties are not affected.

Stated objective

Respond to a national emergency declared over “large and persistent” goods trade deficits (over $1.2 trillion in 2024), rebalance trade relationships, reshore manufacturing and strengthen domestic production; for the February duties, press Canada, Mexico and China to curb flows of fentanyl and illegal migration.[3][2][4]

according to the White House (executive orders and fact sheet of 2 April 2025)

  • Baseline additional duty on all imports

    10%

    from 5 April 2025 · Executive Order 14257[2][1]

  • Highest country rate after the July 2025 revision (Syria)

    41%

    from 7 August 2025 · Executive Order 14326, Annex I[22]

Main measures

  • Reciprocal tariffs (EO 14257): +10% on imports from all trading partners from 5 April 2025, plus higher country rates listed in Annex I. Excluded: steel, aluminium, cars and parts already under Section 232, and products in Annex II (copper, pharmaceuticals, semiconductors, lumber, energy…).[2][1]
  • Fentanyl duties (EOs 14193, 14194, 14195): +25% on Canadian and Mexican goods (10% on Canadian energy), USMCA-qualifying goods exempted from 7 March 2025; +10% on Chinese goods from 4 February 2025. The Canadian rate rose to 35% on 1 August 2025.[4][5][18][19][21]
  • Related but separate (not IEEPA, not affected by the ruling): Section 232 duties on steel and aluminium (raised from 25% to 50% on 4 June 2025) and on cars (25% from 3 April 2025; parts by 3 May 2025 at the latest).[24][23][26]
  • Customs revenue (net of refunds, US Treasury): $194.9 billion in fiscal year 2025 (October 2024–September 2025), against $77.0 billion in fiscal year 2024. In fiscal year 2026, $317.8 billion of duties were collected but $144.6 billion refunded, leaving $173.2 billion net: refunds jumped to $22.0 billion in May 2026 and $49.2 billion in June, against less than $2 billion a month before.[14]
  • Refunds: CBP estimates the IEEPA duties assessed from 3 February 2025 to 24 February 2026 at about $166 billion, on over 53 million entry summaries to process; refunds with interest go through its CAPE tool, opened on 20 April 2026.[31][12]
  • Replacement on other legal bases: temporary 10% surcharge under Section 122 (24 February–24 July 2026), then Section 301 duties of 10% or 12.5% on 60 economies from 24 July 2026.[27][11][30]

In data

Average effective US tariff rate, by stage of the policy[15][32]

2025-2026

Average effective US tariff rate, by stage of the policy — chart values
SituationEffective rate (Yale Budget Lab estimate)
Early January 20252.4%
Peak after the April 2025 announcements (about)28%
Just before the Supreme Court ruling14.3%
Without IEEPA duties (ruling of 20 February 2026)7.3%
With the 10% Section 122 surcharge10.5%

Scale starts at 0% · Rates implied by the policy in force, before consumers and firms adjust their purchases. 2025 values: report of 17 November 2025; 2026 values: report of 9 March 2026, which takes the Section 122 surcharge at its legal rate of 10%. The Budget Lab revises these estimates from one report to the next.

Inflation (CPI)

3%

2024

Federal Reserve Bank of St. LouisSee the card →

Core inflation

3.6%

2024

Federal Reserve Bank of St. LouisSee the card →

Key figures

Average effective tariff rate just before the ruling

14.3%

February 2026, before the ruling · Estimate

according to the Yale Budget Lab (report of 9 March 2026)[32]

Highest since 1939, according to the same source, which revises this estimate from one report to the next.

Entry summaries to process for IEEPA refunds

53,000,000

duties assessed from 3 February 2025 to 24 February 2026 · Estimate

according to CBP (notice in the Federal Register)[31]

Over 53 million entry summaries, about $166 billion of duties; CBP expects about 330,000 refund filers.

Short-run rise in the price level if Section 122 expires as scheduled

0.4%

estimate of 9 March 2026 (range 0.3–0.4%) · Projection

according to the Yale Budget Lab[32]

A loss of $450 to $570 for the average household, according to the same source.

Timeline

  1. Fentanyl duties on Canada, Mexico and China (IEEPA)[4][5][16][17][18][19]

    Executive orders of 1 February 2025: +25% on Canadian goods (10% on energy) and +10% on Chinese goods, the latter applied from 4 February. The Canada and Mexico duties (25%) applied from 4 March 2025; goods qualifying under the USMCA were exempted from 7 March.

  2. Adopted

    Executive Order 14257 signed (“Liberation Day”)[2][4][5]

    Signed under IEEPA after the fentanyl duties of February 2025 on Canada, Mexico and China.

  3. “Liberation Day”: reciprocal tariffs announced[2][3]

    10% on all trading partners from 5 April, higher country-specific rates (Annex I) from 9 April 2025.

  4. In force

    10% baseline duty applies[2][6]

    Collection continued during the litigation: the trade court’s injunction of May 2025 was stayed on appeal.

  5. 90-day pause of country rates; China raised to 125%[20]

    Executive Order 14266: from 10 April to 9 July 2025, partners listed in Annex I pay 10%; the reciprocal rate on Chinese goods rises from 84% to 125%.

  6. Court of International Trade strikes down the IEEPA tariffs[25][7]

    V.O.S. Selections v. United States: summary judgment for the five importers and twelve States, and a permanent injunction. On 29 May a federal district court in Washington ruled the same way in Learning Resources, and the Federal Circuit stayed the injunction.

  7. New reciprocal rates from 10% to 41%[22][21]

    Executive Order 14326 of 31 July 2025 (e.g. Japan 15%, India 25%, Switzerland 39%), plus a 40% duty on goods transshipped to evade duties. On 1 August, the fentanyl duty on Canada rose from 25% to 35%.

  8. Federal Circuit (en banc) confirms the tariffs are unlawful, 7-4[7][31]

    The court sends the question of the injunction’s scope back to the trade court; its stay of May 2025 having kept the duties in place, they are collected until the Supreme Court ruling.

  9. Oral argument at the Supreme Court[8]

  10. Struck down

    Supreme Court: IEEPA does not authorize tariffs[8][9][10]

    Reciprocal and fentanyl duties held unlawful (6-3). The same day, Executive Order 14389 ended their collection; Section 232 and 301 duties are not affected.

  11. IEEPA duties terminated; 10% surcharge under Section 122[10][26][27]

    Executive Order 14389 ends the duties of nine executive orders including 14193, 14194, 14195 and 14257; a proclamation imposes a temporary 10% surcharge from 24 February to 24 July 2026 (Section 122 of the Trade Act of 1974, many exemptions).

  12. Current step

    Refunds of IEEPA duties to importers (CAPE)[12][31][13]

    CBP opened a bulk refund procedure (CAPE) on 20 April 2026. In June 2026 the government appealed the trade court’s orders on refunds to importers who had not sued.

  13. Trade court also rules the Section 122 surcharge unlawful[28][29]

    Divided decision (2-1): an injunction limited to the State of Washington and two importing firms, the other States’ claims dismissed for lack of standing; the government appealed and the surcharge kept being collected from other importers.

  14. Section 122 surcharge expires, replaced by Section 301 duties[11][30]

    Following its “forced labor” investigations, USTR imposes duties of 10% or 12.5% on imports from 60 economies, effective 24 July 2026.

The debate

Citoyen takes no position: arguments are reported as their authors put them.

According to its supporters

  • The White House presented the goods trade deficit, over $1.2 trillion in 2024, as a national emergency rooted in a lack of reciprocity, and the tariffs as a way to reshore manufacturing and protect workers.[3]
  • The administration used the rates as leverage: in April 2025 it suspended the higher country rates for 90 days, citing more than 75 partners that had approached it to address the lack of reciprocity, while raising the rate on China, which had retaliated.[20]
  • Three dissenting justices (Kavanaugh, joined by Thomas and Alito) read IEEPA’s power to “regulate … importation” as including tariffs.[8]

According to its opponents

  • The Supreme Court held that IEEPA does not authorize the President to impose tariffs; the Constitution gives Congress the power to levy taxes and duties.[8]
  • Tariffs are paid by importers and passed on to prices; the Yale Budget Lab estimates the burden relative to income is about three times higher for the poorest tenth of households than for the richest.[32]
  • Courts at every level found the duties unlawful while they kept being collected, leaving importers to seek refunds after the fact.[25][7][8][31]

Indicators to watch

  • Inflation (CPI) · BLS / OCDESee the card →
  • Core inflation · BLS / OCDESee the card →
  • Current account balance · Banque mondialeno Citoyen card yet
  • Customs duties collected · Trésor américain (Monthly Treasury Statement)no Citoyen card yet
  • Industrial production · Federal Reserveno Citoyen card yet

Sources

  1. [1]Executive Order 14257 of April 2, 2025 — Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits (90 FR 15041) — Federal Register (Office of the Federal Register, via GovInfo), April 7, 2025
  2. [2]Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits — The White House, April 2, 2025
  3. [3]Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security — The White House, April 2, 2025
  4. [4]Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border (Executive Order 14193) — The White House, February 1, 2025
  5. [5]Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China (Executive Order 14195) — The White House, February 1, 2025
  6. [6]Landmark Court Rulings: Trump’s Novel IEEPA Tariffs Invalidated, Appeal Filed, and Stay Granted — ArentFox Schiff, May 2025 · secondary source
  7. [7]V.O.S. Selections, Inc. v. Trump, No. 25-1812 (Fed. Cir. 2025) (en banc), opinion of August 29, 2025 — U.S. Court of Appeals for the Federal Circuit, August 29, 2025
  8. [8]Learning Resources, Inc. v. Trump, No. 24-1287, together with Trump v. V.O.S. Selections, Inc., No. 25-250 — slip opinion (argued November 5, 2025, decided February 20, 2026) — Supreme Court of the United States, February 20, 2026
  9. [9]Supreme Court strikes down Trump’s tariffs imposed under emergency powers law — CBS News, February 20, 2026 · secondary source
  10. [10]Ending Certain Tariff Actions (Executive Order 14389) — The White House, February 20, 2026
  11. [11]USTR Takes Action in Forced Labor Section 301 Investigations — Office of the United States Trade Representative, July 23, 2026
  12. [12]CAPE Has Arrived: A Guide to Navigating the Next Phase of IEEPA Duty Refunds — Holland & Knight LLP, April 2026 · secondary source
  13. [13]IEEPA Tariff Refund Update: Government Appeals CIT Refund Order and the Road Ahead for Importers — Holland & Knight LLP, June 2026 · secondary source
  14. [14]Monthly Treasury Statement, Table 4 — Receipts of the United States Government: Customs Duties (gross receipts, refunds, net receipts; fiscal years 2024-2026) — U.S. Department of the Treasury, Bureau of the Fiscal Service (Fiscal Data), October 2026
  15. [15]State of U.S. Tariffs: November 17, 2025 — The Budget Lab at Yale, November 17, 2025
  16. [16]Executive Order 14197 of February 3, 2025 — Progress on the Situation at Our Northern Border (90 FR 9183) — Federal Register (Office of the Federal Register, via GovInfo), February 10, 2025
  17. [17]Executive Order 14198 of February 3, 2025 — Progress on the Situation at Our Southern Border (90 FR 9185) — Federal Register (Office of the Federal Register, via GovInfo), February 10, 2025
  18. [18]Executive Order 14231 of March 6, 2025 — Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border (90 FR 11785) — Federal Register (Office of the Federal Register, via GovInfo), March 11, 2025
  19. [19]Executive Order 14232 of March 6, 2025 — Amendment to Duties To Address the Flow of Illicit Drugs Across Our Southern Border (90 FR 11787) — Federal Register (Office of the Federal Register, via GovInfo), March 11, 2025
  20. [20]Executive Order 14266 of April 9, 2025 — Modifying Reciprocal Tariff Rates To Reflect Trading Partner Retaliation and Alignment (90 FR 15625) — Federal Register (Office of the Federal Register, via GovInfo), April 15, 2025
  21. [21]Executive Order 14325 of July 31, 2025 — Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border (90 FR 37957) — Federal Register (Office of the Federal Register, via GovInfo), August 6, 2025
  22. [22]Executive Order 14326 of July 31, 2025 — Further Modifying the Reciprocal Tariff Rates, with Annex I (90 FR 37963) — Federal Register (Office of the Federal Register, via GovInfo), August 6, 2025
  23. [23]Proclamation 10908 of March 26, 2025 — Adjusting Imports of Automobiles and Automobile Parts Into the United States (90 FR 14705) — Federal Register (Office of the Federal Register, via GovInfo), April 3, 2025
  24. [24]Proclamation 10947 of June 3, 2025 — Adjusting Imports of Aluminum and Steel Into the United States (90 FR 24199) — Federal Register (Office of the Federal Register, via GovInfo), June 9, 2025
  25. [25]V.O.S. Selections, Inc. v. United States, Court No. 25-00066, Slip Op. 25-66 (Ct. Int’l Trade May 28, 2025) — U.S. Court of International Trade (United States Courts Opinions, via GovInfo), May 28, 2025
  26. [26]Executive Order 14389 of February 20, 2026 — Ending Certain Tariff Actions (91 FR 9437) — Federal Register (Office of the Federal Register, via GovInfo), February 25, 2026
  27. [27]Proclamation 11012 of February 20, 2026 — Imposing a Temporary Import Surcharge To Address Fundamental International Payments Problems (91 FR 9339) — Federal Register (Office of the Federal Register, via GovInfo), February 25, 2026
  28. [28]State of Oregon v. United States and Burlap and Barrel, Inc. v. United States, Court Nos. 26-01472 & 26-01606, Slip Op. 26-47 (Ct. Int’l Trade May 7, 2026) — U.S. Court of International Trade (United States Courts Opinions, via GovInfo), May 7, 2026
  29. [29]State of Washington v. United States and Burlap and Barrel, Inc. v. United States, Slip Op. 26-53 (Ct. Int’l Trade May 20, 2026) — denial of a stay pending appeal — U.S. Court of International Trade (United States Courts Opinions, via GovInfo), May 20, 2026
  30. [30]Notice of Actions in Section 301 Investigations of Acts, Policies, and Practices of Various Economies Related to the Failure of Each Economy To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor (91 FR 47318) — Federal Register (Office of the Federal Register, via GovInfo), July 28, 2026
  31. [31]Agency Information Collection Activities; Court-Ordered Refunds Under the International Emergency Economic Powers Act Worksheet (U.S. Customs and Border Protection, 30-day notice) — Federal Register (Office of the Federal Register, via GovInfo), October 5, 2026
  32. [32]State of U.S. Tariffs: March 9, 2026 — The Budget Lab at Yale, March 9, 2026