Australian exporters are facing renewed uncertainty following a landmark by the US Supreme Court decision that eliminated a major class of tariffs, only for new global duties to be imposed almost immediately. The result is a rapid scramble for refunds even as businesses confront fresh cost pressures (for prior coverage, see the US tax alert dated 23 February 2026).
On 20 February 2026, the US Supreme Court held in Learning Resources, Inc. v. Trump that the president lacks authority to impose tariffs under emergency powers, rendering all duties introduced under the International Emergency Economic Powers Act as unlawful as from 24 February 2026. On 4 March, the U.S. Court of International Trade ordered the federal government to refund any tariff collected under the IEEPA regime. US Customs and Border Protection—the agency responsible for issuing refunds—is currently upgrading its systems to process the refund claims, with upgrades expected before the end of April (for prior coverage, see the trade alert dated 17 March 2026). Businesses that do not prepare their data, systems and filings now risk delays or missing out on refunds entirely.
Any relief from the tariffs was short-lived, however. Within hours of the Supreme Court decision, President Trump imposed a new 10% global tariff under Section 122 of the Trade Act. Section 122 authorises the president to impose duties of up to 15% for no more than 150 days to address balance of payments concerns. After 150 days, Congress must act to extend the measure or it expires. Notably, the new tariff applies broadly, including to Australia, despite the Australia-US Free Trade Agreement (FTA). This places Australian exporters on a similar footing to non-FTA countries, marking a significant and unexpected shift.
The combination of the Supreme Court’s invalidation of the IEEPA tariffs and the swift introduction of new tariffs creates both opportunities and risks for businesses navigating an already complex trade environment. While importers are technically entitled to refunds, accessing those funds likely will be slow and administratively burdensome. Overlapping tariff regimes and ongoing policy changes further heighten compliance risks and cost pressures.
The tariff landscape is increasingly fragmented, and businesses should proactively reassess supply chains, pricing structures and contractual arrangements to remain competitive. With refund opportunities likely on the horizon, affected companies should act immediately. Those that move early to secure refunds and adapt their strategies will be better positioned than those waiting for clarity that may not arrive quickly.
Leonie Ferretter
BDO in Australia
On 20 February 2026, the US Supreme Court held in Learning Resources, Inc. v. Trump that the president lacks authority to impose tariffs under emergency powers, rendering all duties introduced under the International Emergency Economic Powers Act as unlawful as from 24 February 2026. On 4 March, the U.S. Court of International Trade ordered the federal government to refund any tariff collected under the IEEPA regime. US Customs and Border Protection—the agency responsible for issuing refunds—is currently upgrading its systems to process the refund claims, with upgrades expected before the end of April (for prior coverage, see the trade alert dated 17 March 2026). Businesses that do not prepare their data, systems and filings now risk delays or missing out on refunds entirely.
Any relief from the tariffs was short-lived, however. Within hours of the Supreme Court decision, President Trump imposed a new 10% global tariff under Section 122 of the Trade Act. Section 122 authorises the president to impose duties of up to 15% for no more than 150 days to address balance of payments concerns. After 150 days, Congress must act to extend the measure or it expires. Notably, the new tariff applies broadly, including to Australia, despite the Australia-US Free Trade Agreement (FTA). This places Australian exporters on a similar footing to non-FTA countries, marking a significant and unexpected shift.
The combination of the Supreme Court’s invalidation of the IEEPA tariffs and the swift introduction of new tariffs creates both opportunities and risks for businesses navigating an already complex trade environment. While importers are technically entitled to refunds, accessing those funds likely will be slow and administratively burdensome. Overlapping tariff regimes and ongoing policy changes further heighten compliance risks and cost pressures.
BDO Takeaway
The tariff landscape is increasingly fragmented, and businesses should proactively reassess supply chains, pricing structures and contractual arrangements to remain competitive. With refund opportunities likely on the horizon, affected companies should act immediately. Those that move early to secure refunds and adapt their strategies will be better positioned than those waiting for clarity that may not arrive quickly.Leonie Ferretter
BDO in Australia