02/20/2026
Supreme Court Decides IEEPA Tariffs Not Legal
Check out this week's Customs Corner to read about the Supreme Court's landmark IEEPA tariff ruling, the U.S.-Indonesia trade agreement on tariffs and market access, and more.
Trade and Customs Updates
1) Supreme Court Decides IEEPA Tariffs Not Legal
The Supreme Court ruled that President Donald Trump could not use the International Emergency Economic Powers Act (IEEPA) to impose tariffs, delivering a 6-3 decision that restricts presidential authority in trade matters.
The Court clarified that while the IEEPA allows the president to "regulate … importation" in response to an unusual or extraordinary threat, it does not grant the power to set tariffs. This landmark ruling reaffirms that tariff-setting authority remains with Congress, not the executive branch.
The Ruling confirms "the Court's decision is not likely to greatly restrict Presidential tariff authority going forward. But the Court's decision is likely to generate other serious practical consequences in the near term. One issue will be refunds. Refunds of billions of dollars would have significant consequences for the U. S. Treasury. The Court says nothing today about whether, and if so how, the Government should go about returning the billions of dollars that it has collected from importers. But that process is likely to be a 'mess,' as was acknowledged at oral argument. Tr. of Oral Arg. 153–155. A second issue is the decision's effect on the current trade deals. Because IEEPA tariffs have helped facilitate trade deals worth trillions of dollars—including with foreign nations from China to the United Kingdom to Japan, the Court's decision could generate uncertainty regarding various trade agreements. That process, too, could be difficult."
GEODIS will continue to monitor the situation and provide updates as they become available.
Reference:
24-1287 Learning Resources, Inc. v. Trump (02/20/2026)
2) U.S. and Indonesia Reach Trade Agreement on Tariffs and Market Access
The United States and Indonesia have finalized a trade agreement, announced late on February 19, that will see both countries adjust key tariff and market access policies.
Under the new deal, the U.S. will maintain its existing 19% reciprocal tariff rate on Indonesian goods. However, Indonesian textile and apparel products will be subject to a new tariff-rate quota, allowing a certain volume to enter the U.S. market tariff-free under the reciprocal agreement.
In return, Indonesia has agreed to eliminate tariff barriers on more than 99% of U.S. products. The agreement also includes commitments to reduce non-tariff barriers for American goods, notably by recognizing U.S. Food and Drug Administration (FDA) and motor vehicle safety standards, according to a White House fact sheet.
As part of the deal, Indonesia has pledged to implement a ban on forced labor and to introduce measures that have an "equivalent restrictive effect" to U.S. tariffs imposed for national security reasons. The United States stated it "may positively consider" the agreement's impact on national security, including in relation to existing Section 232 tariffs.
The agreement will enter into force 90 days after both parties have exchanged written notifications confirming the completion of their respective legal procedures, or on another mutually agreed date.
References:
- Fact Sheet: Trump Administration Finalizes Trade Deal with Indonesia – The White House
- 02.19.26 US-IDN ART Full Agreement – US Final for Website sanitized.pdf
3) Trump Administration Proposes New Fees on Foreign-Built Vessels and Land Ports in Maritime Action Plan
The White House unveiled its Maritime Action Plan on February 13, outlining major policy changes including new fees on foreign-built vessels entering U.S. ports and a land port maintenance tax aimed at preventing cargo carriers from avoiding the Harbor Maintenance Fee. Under the proposed plan, a "universal fee" would be levied on all foreign-built commercial vessels, calculated based on the weight of imported tonnage. While the plan did not specify an exact amount, it suggested that a fee of 1 cent per kilogram could generate approximately $66 billion over ten years, and a 25 cent per kilogram fee could raise as much as $1.5 trillion. Revenue would be directed to the Maritime Security Trust Fund to support U.S. maritime infrastructure.
Additionally, the plan recommends a "Land Port Maintenance Tax," equal to the existing Harbor Maintenance Tax, to ensure cargo entering the U.S. by land contributes to trade infrastructure maintenance. This modest tax, set at 0.125% of the merchandise's value, would be deposited into a new Land Port Maintenance Trust Fund for land port improvements.
These measures are part of a broader strategy mandated by President Trump's April 2025 Executive Order, "Restoring America's Maritime Dominance," which focuses on rebuilding shipbuilding capacity, reforming workforce training, protecting the maritime industrial base, and enhancing national and economic security. The plan also proposes a "Maritime Preference Requirement" that would require major exporting economies to transport increasing volumes of their cargo on U.S. vessels, and outlines steps to digitize import systems, promising improved cargo safety and streamlined commerce through updated CBP data-reporting requirements.
The Action Plan reflects ongoing efforts to strengthen America's maritime sector, address trade infrastructure needs, and ensure foreign entities contribute to the maintenance and security of U.S. ports.
Reference:
Restoring America's Maritime Dominance – The White House
4) U.S. and North Macedonia Reach Framework for Reciprocal Trade Agreement
The United States and the Republic of North Macedonia have agreed on a framework for a new Reciprocal, Fair, and Balanced Trade Agreement aimed at strengthening bilateral economic ties and expanding market access for exporters from both nations.
Under the proposed agreement, North Macedonia will eliminate all customs duties on U.S. industrial and agricultural goods, providing American exporters with greater access to the North Macedonian market. In return, the United States will maintain a 15 percent reciprocal tariff on goods originating from North Macedonia, as stipulated by Executive Order 14257 (April 2, 2005, as amended). Additionally, certain North Macedonian products listed in Annex III of Executive Order 14346 (September 5, 2025, as amended) will be eligible for a zero percent reciprocal tariff rate.
Both countries have committed to considering further tariff modifications in the future, taking into account trade balances and other relevant factors. The agreement is designed to deepen the transatlantic partnership, support shared strategic interests, and promote economic growth. The United States and North Macedonia will now work to finalize the agreement, prepare it for signature, and complete necessary domestic procedures before it enters into force.
References:
- Joint Statement on a Framework for United States–North Macedonia Agreement on Reciprocal, Fair, and Balanced Trade – The White House
- Fact Sheet: The United States and North Macedonia Reach a Framework for Agreement on Reciprocal Trade | United States Trade Representative
- Ambassador Greer Issues Statement on Framework for Agreement on Reciprocal Trade with North Macedonia | United States Trade Representative
5) FDA Updates Cosmetics Direct Portal to Streamline Biennial Registration Process
On February 11, 2026, the U.S. Food and Drug Administration (FDA) announced significant updates to its Cosmetics Direct electronic submission portal and related materials to support the biennial registration of cosmetic product facilities, as mandated by the Modernization of Cosmetics Regulation Act of 2022 (MoCRA).
MoCRA requires all manufacturers and processors of cosmetic products to register their facilities with the FDA and renew their registration every two years. The recent updates to Cosmetics Direct include new features displaying each facility's registration status and renewal date, automated renewal reminders for registered facilities, and revised instructions and tutorials to guide users through the registration and renewal process.
For more information and detailed instructions, stakeholders can visit the FDA's Registration & Listing of Cosmetic Product Facilities and Products page or access the Cosmetics Direct portal.
References:
FDA Direct Registration & Listing of Cosmetic Product Facilities and Products | FDA Cosmetics Direct | FDA
6) CBP Launches New Electronic System for Vessel Export Manifests to Boost Security and Efficiency
U.S. Customs and Border Protection (CBP) has announced a major overhaul of its export procedures by introducing a new electronic system for vessel export manifest data. This modernization initiative will replace traditional paper and email submissions with electronic messaging, bringing export processes in line with current import manifest systems.
The new regulation will require carriers and other authorized parties to submit essential shipment information electronically before a vessel departs. By receiving cargo data in advance, CBP aims to improve the accuracy and timeliness of information, enhance risk assessment, and ensure compliance with U.S. export regulations.
This proactive shift will help CBP identify and address potential security threats more effectively, streamline export processing, and protect the integrity of goods shipped from the United States to foreign destinations. Ultimately, the move is intended to facilitate legitimate trade while strengthening national security.
References:
- Federal Register :: Electronic Export Manifest for Vessel Cargo
- CSMS # 67749745 – CBP Issues Proposed Rule to Require Electronic Export Manifest (EEM) for Vessel (Ocean) Mode of Transportation
EVENT: Agriculture Permits Overview Webinar
Wednesday, February 25, 2026, at 12:00 p.m. ET
U.S. Customs and Border Protection's (CBP) Office of Field Operations is hosting a webinar titled Agriculture Permits Overview. This webinar will have USDA presenters deliver an overview of permits, while CBP personnel will provide a focused presentation on the procedures for processing transit permits.
Agriculture Permits Overview Webinar - Website
EVENT: NCSD's March & April Webinar Schedules
Various Dates | 1:30 PM ET | Webinar
U.S. Customs and Border Protection's Office of Trade's National Commodity Specialist Division (NCSD) is hosting the following webinars in March and April as part of the 2026 NCSD webinar series. Entry is on a first-come, first-served basis as seats are limited. After the live event, previously recorded webinars will be available for replay at Trade Outreach Webinars | CBP.
NCSD's March Webinar Schedule:
- Tuesday, March 24, 2026: Parts of General Use — An overview of what is considered a part, part of the 2026 Education Commodity Specific Webinar Series.
- Thursday, March 26, 2026: Stepping Forward in Smart Kicks — This webinar will explain the classification of smart footwear.
NCSD's April Webinar Schedule:
- Tuesday, April 7, 2026: The Classification of Steel Bars and Rods in Chapter 72 — This webinar will cover the tariff classification of chapter 72.
- Thursday, April 9, 2026: Plates, Sheets, Film, Foil & Strip of Plastics — This webinar will focus on the nuances of classification of plates, sheets, film, foil, and strip of plastics in headings 3920 and 3921 of the Harmonized Tariff Schedule of the United States.
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