Originally published March 24, 2026. This version was rebuilt from the Supreme Court opinion, presidential actions and CBP for the FIN archive, and the facts are as of that date.
For importers of rugs, furniture and decor, the tariff picture changed more in a month than in most years. The rules got lower in some places and harder to read in all of them.
The short version
- The Supreme Court ruled that the emergency tariffs exceeded the President's authority.
- A temporary surcharge on most imports took effect a few days later.
- Refunds of the struck down tariffs were not automatic.
The Court strikes the emergency tariffs
On February 20 the Supreme Court ruled that the International Emergency Economic Powers Act did not authorize the broad tariffs imposed under it. That covered the reciprocal tariffs, including the high rates that had been applied to goods from India.
Indian rugs and textiles had been among the most exposed home goods. A deal announced earlier in February had already set an 18% rate for India, down from much higher levels.
A new surcharge fills the gap
Days after the ruling, a proclamation imposed a temporary 10% import surcharge for 150 days under Section 122 of the Trade Act, with exclusions for some product groups.
Separate Section 232 tariffs on upholstered furniture, cabinets and timber products were not affected by the ruling.
Fighting for refunds
The ruling did not send any money back on its own. Importers that wanted to recover what they had paid had to press their claims, and act before their entries became final.
Update. CBP later set up an IEEPA duty refund process for importers of record.
Harder to read
Lower rates were good news for importers, but a temporary surcharge, open refund claims and a stack of separate tariff programs made costs hard to plan around.
Related on FIN
Sources
- Supreme Court of the United States, Learning Resources, Inc. v. Trump, No. 24-1287, opinion of Feb. 20, 2026
- The White House, Fact sheet on the US-India trade deal, February 2026
- The White House, Proclamation imposing a temporary import surcharge (Section 122)
- The White House, Proclamation on timber, lumber and derivative products (Section 232), Sept. 29, 2025
- US Customs and Border Protection, IEEPA Duty Refunds
Get the next issue in your inbox
Free news and analysis for furniture professionals across retail, manufacturing and the supply chain.
Get furniture trade updates between issues.
Follow us on LinkedIn