The following update is drawn from analysis provided by Richard Rumbelow at Make UK.
The US Supreme Court decision to end tariffs introduced under the International Emergency Economic Powers Act marks a significant legal reset in US trade policy, but it does not restore stability for UK manufacturers trading with the US. While the ruling removes a layer of politically driven and ‘reciprocal’ tariffs, the Administration has already moved to impose a temporary 10% blanket tariff under Section 122 of the 1974 Trade Act, applicable from 24 February 2026. For Northern Ireland manufacturers, this means continued exposure to a flat ad valorem tariff, ongoing border complexity, and renewed uncertainty around future US trade actions. The legal position may have shifted, but the commercial environment remains volatile, and further tariff investigations and policy interventions during 2026 should be expected.
- US Supreme Court rules against Tariff measures introduced in Apr 2025 under the International Emergency Economic Powers Act
- Tariffs under IEEPA ended from 00.01 (Eastern time) 24 Feb 2026.
- Tariffs affected include ‘reciprocal’ tariffs, fentanyl- related and politically motivated tariffs.
- Decision does not affect Section 232 (e.g. auto’s, steel) and Section 301 tariffs.
- No ruling on Tariff refund procedures. Litigation by the plaintiffs and other importers through US International Trade Court expected.
- US Admin respond by invoking Section 122 of the 1974 Trade Act—a legitimate trade policy tool under US law
- Law allows a blanket tariff of up to 15% to be applied for up to 150 days (24 July 2026). As of now, Section 122 tariff level is 10% on all countries, including UK.
- Section 122 tariffs are applicable from 00.01 (Eastern Time)/ 05.01 (GMT) 24 Feb 2026 and will be collected by US Customs and Border Protection.
- Extension to Section 122 tariffs would require congressional approval.
- Exemptions covering energy, agriculture, pharma, vehicles, aerospace (and more) products also now come into force.
- Section 122 tariffs do not stack with existing Section 232 duties
- US Admin continues with ‘de minimis’ suspension including on postal shipments. Prior to Aug 2025, import shipments under $800 were customs, tariff, and admin exempt.
- US Admin (through US Trade & Representative Office) signalled new and expanded trade and market investigations. The potential for future tariff action in 2026.
Links
Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries – The White House
Ending Certain Tariff Actions – The White House
Make UK response:
- Supports UK Government efforts to respond quickly to the actions of the US Admin. The UK-US Economic Prosperity Deal (EPD) provides a privileged framework, and both sides must ensure commitments continue to broaden UK-US trade relations. UK goods tariffs under the EPD are impacted by Section 232’s and should remain unaffected by the Supreme Court decision. Ongoing US Admin reassurances are welcome and must be guaranteed.
- Trade uncertainty: though preferential trading relations continue (10% tariff rate ad-valorum), the immediate impact will be a loss of stability, certainty, clarity, and confidence for UK exporters in how they conduct trade with the US in coming days, weeks, and months.
- Supply chain disruption: though UK export tariff rate remains constant, how US authorities will handle a complex change in border arrangements for global inbound goods with changed duty rates, compliance requirements, and pricing pressures for most goods imports, will impact the timeliness of goods arriving with US customers.
- Trade preference: The standardised 10% ad valorum tariff rate (non-Section 232 related tariffs) means the UK is worse off (compared to others such as the EU) and has effectively lost its preferential trading arrangement secured last May. The UK Government must now work hard to re-instate the UK’s wider preferential status with the US.
Make UK Trade Report: January 2026
Key lines from the recent Trade Report
- 1 in 5 UK manufacturers have reduced or stopped exports to the US altogether
- Nearly a quarter reported financial losses due to US tariff-related costs
- Almost 1 in 4 accelerated their trade into the US to beat the tariffs
- 23% have shifted export focus to non-US markets
- While 8 in 10 UK manufacturers report impact from global tariffs/ duties in the last five years
Overall: US Supreme Court decision provides a brake on the future trade policy/tariff actions of the US Administration that are not within legal, congressional & executive power oversight. It doesn’t alter the wider view of the Administration on the need for trade protectionist measures. It will accelerate new market investigations and further tariff actions must be expected during 2026 and beyond.
The implications for UK–US trade and a return to stability, certainty and clarity is urgently needed. UK should maintain maximum trade diplomacy opportunities and not defer to a position that could be seen as publicly critical which could threaten immediate prospects for a re-stabilisation in UK-US trade.