NEWS | What the Recent SCOTUS Decision on Tariffs Means for Small Business and NSBA, FAQs

• NSBA
• 2 hours ago
• 4 min read

Following the SCOTUS tariff ruling, NSBA continues to advocate for common sense, small-business policies providing clarity and stability, and we are closely monitoring developments to ensure small-business voices remain front and center as the effects from the decision evolve.

*ANALYSIS | *While the Supreme Court’s recent decision may appear technical or narrowly focused, its implications for small businesses are far broader. The ruling reinforces the Court’s growing scrutiny of federal agency authority and signals a more constrained regulatory environment moving forward. For small-business owners, that could mean fewer abrupt regulatory shifts—but also increased uncertainty as agencies recalibrate and Congress faces renewed pressure to legislate more precisely. In short, this decision underscores a shifting balance of power in Washington that will directly shape how, and how quickly, new rules affecting small businesses are written and enforced.

*MARCH 04, 2026 | *On Feb. 20, 2026, the U.S. Supreme Court ruled that many of the sweeping tariff measures imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were unlawful, invalidating a centerpiece of recent U.S. trade policy.

However, the decision did not include a mechanism for issuing refunds of the billions collected in tariff duties, creating many questions related to reimbursements and what happens next for small-business owners nationwide.

Here are a few of the most frequently asked questions we’ve received so far:*

The Supreme Court struck down the White House’s tariff policy. Does that mean all tariffs are now obsolete?

No. On February 20, 2026, the Supreme Court of the United States (SCOTUS) ruled 6–3 that the President lacked authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), the law the Administration used on an emergency justification as the primary basis for its asserted tariff authority. Those specific tariffs, including the sweeping "Liberation Day" tariffs from April 2025, were struck down by the Court.

However, following the ruling, the Administration issued new tariffs through a separate legal authority under Section 122 of the Trade Act of 1974. By this authority, a 10 percent across-the-board tariff on imports from essentially all countries took effect on Feb. 24, 2026.

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What tariffs are still in effect right now?

Several layers of tariffs remain active. For instance, the latest 10 percent Section 122 tariff currently broadly applies to goods from most countries.

Separately, a range of industry-specific tariffs imposed under Section 232 of the Trade Expansion Act remain fully in force. These include tariffs on steel, aluminum, copper, automobiles and auto parts, lumber, semiconductors and other goods.

Section 301 tariffs on Chinese goods also remain in effect.

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Will businesses get refunds for tariffs they already paid under the old rules?

Potentially, but the process is unresolved.

The Court's decision established IEEPA tariffs as unlawful as used by the Administration without congressional authority, and legal experts broadly agree that amounts collected under an invalid law should be returned.

While this presents promise for small businesses affected by these tariffs, the Administration's executive order revoking the IEEPA tariffs did not address refunds, leaving the question to the courts.

If your small business paid IEEPA tariffs, you should preserve all records of those payments.

This situation is still developing.

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How long will the new Section 122 tariffs last?

Section 122 is a temporary authority. In a nutshell, it allows the President to impose across-the-board tariffs for up to 150 days. The current tariffs took effect February 24, which means they are set to expire around late July 2026, unless Congress votes to extend them.

The Administration also signaled it will use the 150-day window to initiate new Section 301 investigations into unfair trading practices by other countries, which could result in a fresh round of targeted tariffs down the road.

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Are there any legal pushbacks or other challenges resulting from the SCOTUS ruling?

The SCOTUS ruling sparked awave of litigation, as importers, including both major corporations and small businesses, seek to recover the fees they paid.

More than 1,400 companies, from FedEx and Costco to L’Oréal, Dyson, and Bausch + Lomb, have filed lawsuits in the U.S. Court of International Trade seeking tariff refunds with interest.

Logistics giant FedEx stated it will pursue refunds and pass reimbursements along to customers and small shippers when legally possible.

Appeals courts have already rejected government attempts to delay the process, advancing litigation back to trial courts, where importers hope they can compel action more quickly.

For a number of small businesses, several of which were listed as plaintiffs in the underlying case heard by SCOTUS, the focus now turns to options related to judicial enforcement of refunds. Some small businesses have asked the trade court to order the government to issue “all necessary administrative orders” to begin reimbursements, arguing that relief for small firms should not be delayed while larger cases proceed.

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What’s Congress doing about this chaos?

On Capitol Hill, several lawmakers introduced measures, such as the Tariff Refund Act, which is intended to mandate refunds with interest, as well as expedite payments to smaller businesses within a defined timeframe, though, political and veto risks remain.

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So, what should my small business be doing right now?

First, review your current sourcing and supply chain to understand which goods are subject to Section 232 or new Section 122 tariffs, since those costs are real and ongoing.

Second, if you have been paying IEEPA tariffs, start gathering your import records now. Do not wait on the refund question to clarify before pulling your documentation together.

You can also share your story of how the tariff decision has affected your small business and bottom line. It is through these kinds of testimonials that NSBA is best able to provide context to Congress and the White House to fight for better, more common sense policies. Share your story here.

Finally, stay connected with NSBA. We are actively monitoring developments and will communicate updates to members and the small-business community as the situation continues to unfold.

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*A quick disclaimer: the information provided here is not intended to substitute for the particularized advice of your own counsel.