On February 20, the U.S. Supreme Court issued a 6–3 decision ruling that President Donald Trump’s tariffs on products entering the United States from multiple countries were not authorized under the International Emergency Economic Powers Act (IEEPA).

The case was brought by several plaintiffs, including Toy Association member company Learning Resources, led by its Chair & CEO Rick Woldenberg. The Court’s decision invalidates the tariffs that had been imposed under IEEPA authority.

Refund Status
The Supreme Court did not order immediate refunds of duties previously collected under the IEEPA tariffs. Instead, the matter was remanded to the U.S. Court of International Trade for further proceedings.

As of now, it remains unclear how the administration and U.S. Customs and Border Protection will address previously collected duties. Formal guidance regarding potential refunds has not yet been issued. Based on the information that is currently available, the Toy Association will provide refund guidance exclusively to members this week. Companies that were importers of record and paid IEEPA tariffs are advised to contact their customs brokers to ensure documentation is preserved in the event refund procedures are established.

New Tariff Proclamation Under Section 122
Following the Supreme Court’s decision, President Trump signed a new proclamation on February 20 imposing additional tariffs under Section 122 of the Trade Act.

Key provisions include:

• A new 10% tariff on all U.S. imports


• Effective at 12:01 a.m. on February 24, 2026


• The tariff will remain in effect for 150 days


• Goods compliant with the United States-Mexico-Canada Agreement (USMCA) from Canada and Mexico are exempt

Under Section 122, tariffs may remain in place for up to 150 days (through July 24, 2026). After that period, congressional action may be required to extend them. The statute does not clearly address whether the administration could reinstate similar tariffs immediately after the 150-day period through another executive action.

Tariff Increase Under Section 122
On Saturday, February 21, President Donald Trump announced that he intends to increase the new global tariff rate from 10% to 15%, one day after the Supreme Court struck down the IEEPA-based tariffs.

In a statement posted on Truth Social, the President wrote that, following review of the Court’s decision, he would be “effective immediately, raising the 10% Worldwide Tariff on Countries … to the fully allowed, and legally tested, 15% level.”

As of this writing, the White House has not officially implemented the increased 15% tariff rate.

The Toy Association continues to actively monitor policy and legal developments and will provide members with timely updates as new information becomes available.