How the administration is replacing IEEPA tariffs

On 20 February 2026, the Supreme Court issued a 6 to 3 ruling confirming that IEEPA cannot be used to impose tariffs. The administration responded by introducing new tariffs under Section 122 of the Trade Act of 1974. Section 122 enables a temporary global surcharge of up to 15 per cent on all trading partners, but the administration has chosen to initially enforce 10 per cent. However, the President has indicated that the tariff may be increased to 15 per cent.

Economists note that this shift does not signal a move towards more open trade. Sweden, the European Union (EU) and other partners should expect continued trade policy friction.

US tariff authorities: What is in force now vs what may follow
Status after the ruling Legal authority What it means in practice
New and enforced tariffs Section 122 Section 122 now applies a temporary 10 per cent global import surcharge. The measure is capped at 15 per cent. It applies on top of the Most Favoured Nation (MFN) tariff rate and existing Section 301 duties. USMCA and sectorial exemptions and stacking principles follow similar patterns as before. Section 122 measures last up to 150 days unless extended by Congress.
Unchanged tariffs Sections 301 and 232 Tariffs under Section 301 remain in place for China, with duty rates between 7.5 and 100 per cent. Measures under Section 232, including duties on steel and aluminium, are unchanged.
Investigations and potential future tariffs Section 301 New Section 301 investigations are expected. These investigations allow the administration to introduce targeted, country specific or product specific tariffs once completed.
What Section 122 means in practice

Section 122 serves as a bridge mechanism. For up to 150 days, imports from all nations face a 10 per cent surcharge plus the MFN rate. Section 232 tariffs continue to apply separately. For some Swedish exporters, this may result in temporarily lower tariff exposure compared with previous effective levels.

During this period, the administration is preparing several new Section 301 investigations. Tariff levels are likely to move back towards pre ruling levels once these investigations conclude. Companies should not assume that the current rates will remain. Short-term stockpiling may be relevant for some importers.

What the ruling means for refunds and recovery

The ruling does not address whether companies are entitled to refunds for tariffs previously paid under IEEPA. The federal government has collected approximately BUSD 134 according to the Washington Post, and more than 1,000 lawsuits seeking refunds have been filed.

Refunds, if granted, would normally be paid to the US importer of record (IOR). Companies that are the IOR should protect their rights by filing administrative protests with US Customs and Border Protection (CBP). They should also consider early action at the US Court of International Trade (CIT). Taking these steps can help ensure claims are considered promptly if a refund mechanism is introduced.

Companies that are not the IOR should establish agreements with their importers to define how potential refunds will be shared.

Litigation and administrative processes will determine whether refunds will be granted. Cash flow relief is unlikely in the short-term. As President Trump told reporters at the White House, “We will end up being in court for the next five years.” Refunds should therefore be viewed as a possible benefit rather than an operational assumption.

EU response and implications for Swedish companies

Following the introduction of new US tariffs, the EU announced another pause in the ratification of the US–EU trade deal on 23 February 2026. The pause reflects uncertainty about US tariff policy and concerns that rapid changes reduce predictability for exporters.

For Swedish companies, the pause adds another layer of uncertainty. Deal-driven improvements in market access are unlikely in the near term. However, pausing US operations and investments risks losing market share and positioning and the US remains a key market for many Swedish firms.

In the near-term, Swedish companies should:
  • Assume continued friction in EU–US trade relations and limited immediate tariff relief
  • Re-evaluate tariff exposure and related cost models
  • Pull forward purchases or stockpiling inventory while the 10 per cent surcharge applies, when relevant
  • Treat Section 122 as a temporary measure and prepare for the return of more targeted Section 301 duties
  • Strengthen contractual and commercial flexibility to manage sudden changes
  • Participate in Section 301 comment processes where relevant
  • Assess whether US or North American localisation could reduce long term exposure to policy shift
What to Watch this week
  • Updates from CBP and revisions to the Harmonised Tariff Schedule (HTS) that clarify how Section 122 applies – and what it means for your entry filing, cost modelling, and import strategy
  • Early signs of new Section 301 investigations, including opportunities for public comment and their potential country-by-country and product-by-product impact
Get SME tariff support

Under the US–Sweden Tariff Intelligence and Advisory Platform, Business Sweden will host a webinar together with KBKG on 19 March. The session will explain how a transfer pricing agreement can support companies that import into the United States. Swedish small and medium-sized enterprises (SMEs) can join the platform to access the webinar and stay updated on new tariff developments. Click here to register for the US–Sweden Tariff Intelligence & Advisory Platform

We welcome registrations to the platform from large companies as well.

Get in touch

Business Sweden has extensive experience in tariff scenario analysis, localisation planning and supplier assessments. For support with your supply chain or to understand how new tariffs may affect your US operations, please contact Johan Karlberg or Vlad Månsson.

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