Tariff Updates: Navigating the Evolving Landscape of US Trade Regulations
The world of international trade is in constant flux, and recent developments regarding tariffs and the Consolidated Administration and Processing of Entries (CAPE) system are significantly impacting businesses. This article provides a comprehensive overview of the latest updates, from Supreme Court rulings on IEEPA tariffs to the implementation of new duties and the progress of the CAPE system.
Supreme Court Strikes Down IEEPA Tariffs
On February 20, 2026, the U.S. Supreme Court delivered a landmark 6-3 decision, striking down the Trump administration’s International Emergency Economic Powers Act (IEEPA) tariffs. The Court held that while IEEPA allows the president to regulate imports during national emergencies, it doesn’t explicitly authorize the imposition of duties. This ruling reaffirms previous decisions by the Court of International Trade (CIT) and the U.S. Court of Appeals for the Federal Circuit.
Following the ruling, President Trump announced a new 10% global tariff under Section 122, later increased to 15%, citing a response to the Supreme Court’s decision. The precise implications of this new duty, and its stacking with existing trade agreements, are still being clarified.
The CAPE System: Automated IEEPA Refund Progress
U.S. Customs and Border Protection (CBP) is actively developing the Consolidated Administration and Processing of Entries (CAPE), an automated IEEPA tariff refund system. As of April 14, 2026, CBP has confirmed the primary development of all four core components of CAPE Phase 1 is complete and is now undergoing intensive performance and scenario-based testing, with an expected launch date of April 20, 2026.
- Electronic Refund Readiness: 56,497 importers and notify parties have signed up for electronic refunds, covering approximately 82% of entries with IEEPA duty payments.
- AD/CVD Entries: CBP is still determining the process for pre-liquidation refunds for entries subject to Anti-Dumping/Countervailing Duty (AD/CVD) orders, which account for around 166,000 entries.
- Post Summary Corrections (PSCs): Importers are advised not to file PSCs for IEEPA duty refunds; all unliquidated entries must go through CAPE.
CAPE Phase 1 will initially handle unliquidated entries or those liquidated within the preceding 80 days. While CBP anticipates a refund processing timeline of around 45 days, formal guidance on disbursement timelines is still pending.
Recent Tariff Adjustments and Investigations
Beyond the IEEPA ruling, several other tariff-related developments have occurred:
- Section 232 Modifications: President Trump signed a proclamation modifying Section 232 tariffs on steel, aluminum, and copper, as well as their derivatives.
- Pharmaceutical Tariffs: Executive orders were signed to impose Section 232 tariffs on certain pharmaceutical products, with staggered effective dates for large and small companies.
- Section 301 Investigations: The U.S. Trade Representative (USTR) announced new Section 301 investigations targeting 60 U.S. trading partners, focusing on forced labor concerns and excess production capacity.
What Businesses Should Do Now
Given these changes, businesses should take the following steps:
- File Protests: Continue filing protests with CBP to keep entries “live” and ensure eligibility for refunds.
- Monitor CAPE Updates: Stay informed about the CAPE system’s launch and functionality.
- Seek Expert Guidance: Consult with trade professionals to navigate the complexities of these evolving regulations.
Flexport is closely monitoring these developments and working with customers to ensure continuity, accuracy, and readiness. The Department of Commerce provides further resources on trade regulations.
Disclaimer: This information is for general guidance only and does not constitute legal advice. Consult with a qualified professional for specific advice tailored to your situation.
