Please see below for the latest tariff updates and how Global-Pak is responding.
Supreme Court Decision on IEEPA Tariffs
The U.S. Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize broad import tariffs. As a result, tariffs imposed solely under IEEPA are no longer legally supported.
Please note that tariffs imposed under other statutory authorities including Section 301 (unfair trade practices) and Section 232 (national security) remain in effect and are not impacted by this ruling.
At this time, refund procedures for previously paid IEEPA duties remain unclear. The Court did not order refunds, and any reimbursement process will depend on future administrative guidance and potential litigation. See Global-Pak’s Tariff Refund Statement below for further details.
New 10% Temporary Import Surcharge (Section 122)
To replace the invalidated IEEPA authority on an interim basis, the President has issued a proclamation imposing a temporary import surcharge under Section 122 of the Trade Act of 1974.
Key details:
Rate: 10% additional duty
Effective Date: February 24, 2026, at 12:01 a.m. Eastern Time
Duration: Up to 150 days, unless extended or modified by Congress
Application: Broad, generally non-discriminatory across countries, applying to goods not already subject to Section 232 tariffs.
Legal Basis: Section 122 authority tied to balance-of-payments findings
Current Status
Based on the current legal framework, the applicable rates are as follows:
On imports from India, the current rate is 18.4% (10% temporary import surcharge under Section 122 + the 8.4% base rate).
On steel items from China, the current rate is 75% (25% Section 301 + 50% Section 232).
In response to these changes, Global-Pak is taking the following steps:
Stock Item Pricing Adjustments
Over the past year, as tariff costs increased, our pricing was adjusted incrementally to reflect rising production costs. As new inventory is produced under the revised, lower tariff structure, we will adjust our stock pricing downward in phases to align with the reduced landed costs.
Custom Quotes
All new custom quotations are being prepared using the tariff rates currently in effect. As noted on our quotes and sales orders, pricing is subject to revision without prior notice due to the evolving nature of global tariff policies. We continue to closely track regulatory changes and will provide updates promptly as additional guidance becomes available.
Open Orders
Global-Pak is adjusting all open orders to match the current tariff rate. This will be reflected on all invoices. This situation remains fluid, and our policy is to match the current tariff rate upon billing. If anything changes, we will continue to notify our customers.
Global-Pak's Tariff Refund Statement
Due to the volume of refund-related tariff questions, we want to provide a clear update for our customers.
At this time, tariff refunds have not been officially approved. If tariff refunds come into fruition, Global-Pak will request them promptly and review all orders that will need to be refunded. At this time, there is no certainty on whether tariff refunds will occur, and Global-Pak cannot issue any refunds until funds are received directly from the government. The timeline for this process is unknown.
Due to the refunds being speculation only, we are unable to invest resources into reviewing individual refund requests. We are a lean company and due to the volume of orders and customers, evaluating the refunds will be a major undertaking. Please rest assured, if tariff refunds do become reality, we will be sure to work through them diligently and as quickly as we can - even if we need to hire someone just to review the tariffs.
In the event the tariffs get refunded, container orders will be addressed first, followed by less than container loads and we will get through them as we can. Any admin costs Global-Pak is required to pay or absorb due to the workload from the refunds will be deducted from the tariff refund amounts, and we do not know what this situation may be.
In the meantime, our team is working diligently to adjust all open orders for the newly reduced tariff rates. We understand that the tariff situation has been challenging and appreciate your patience and continued partnership. We are committed to providing you with transparent communication and will provide updates as soon as more information becomes available.
Thank you for your continued trust and partnership with Global-Pak.