Chief’s Response to Tariffs
With the regulatory situation continuing to evolve, our mission remains to provide you with the most current information and to proactively support our customers and partners in understanding the impact of tariff policy changes. As global trade and regulatory frameworks shift, we remain committed to keeping you informed.
As of February 20, 2026, a significant development has occurred regarding tariffs imposed under the International Emergency Economic Powers Act (IEEPA):
- Supreme Court Ruling: On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the executive branch authority to unilaterally impose duties. This ruling invalidates tariffs that were implemented under IEEPA authority.
- Existing Duties Remain: Despite this ruling, tariffs imposed under Section 232 (steel and aluminum) and Section 301 (China-specific tariffs) remain in effect and continue to apply to applicable goods.
- Section 122 Tariffs Implemented: Following the removal of IEEPA-based tariffs by U.S. Customs and Border Protection (CBP), a new tariff was implemented under Section 122. As a result, current tariff rates remain unchanged for the time being.
- Awaiting Regulatory Guidance: CBP has not yet issued formal operational guidance. This guidance will be required before any changes to duty collections or potential refund processes can be implemented.
Chief Enterprises is working closely with our partners, importers, and legal advisors to fully understand the implications of this decision and any potential impact on our customers.
Once final notice and operational guidance are provided by CBP, we will conduct a comprehensive review of tariff rates and any potential reimbursements or adjustments that may apply.
We will continue to monitor developments closely and will share updates as additional information becomes available.
Frequently Asked Questions
How are tariff charges calculated?
Tariffs are assessed based on U.S. Customs regulations and applied as a percentage of the product’s declared value. These percentages are determined by the country of origin and the HTS (Harmonized Tariff Schedule) codes assigned to each item.
Will I see tariffs on my invoice?
Yes. If applicable, tariff charges are itemized on quotes and invoices under a separate line item labeled as “Tariff” or “Tariff Surcharge” for transparency. These reflect the actual import duty incurred on your order.
Are your custom or value-added assemblies affected by tariffs?
Yes, if they include components sourced from countries subject to tariffs. We track component origins closely and will communicate any tariff impact during quoting or order confirmation.
Do you adjust tariffs retroactively if policies change?
Tariff costs are based on the import date and prevailing U.S. Customs regulations. If a tariff rate changes after a shipment clears customs, we cannot retroactively adjust charges, but we will update pricing for future orders accordingly.
What products are impacted by the new tariffs?
As part of evolving U.S. trade policy, a series of new tariffs and amendments have recently been enacted that impact imports across a broad range of goods. Below is a summary of the key updates that may affect sourcing, pricing, and availability of components distributed or manufactured by Chief Enterprises.
| Tariff Type | Applicable Countries | Rate | Effective Date | Notes |
|---|---|---|---|---|
| Section 232 Tariffs | Global (steel and aluminum imports) | 25% Steel / 10% Aluminum | March 23, 2018 | National security tariffs remain in effect |
| Section 301 Tariffs | China (including Hong Kong & Macau) | Up to 25% depending on product list | 2018–Present | Tariffs targeting Chinese-origin goods remain in effect |
| Section 122 Tariffs | Global (broad application) | 10% | February 24, 2026 | Implemented after removal of IEEPA-based tariffs following the Feb 20, 2026 Supreme Court ruling; current tariff rates remain unchanged pending CBP guidance |
How does USMCA affect tariffs?
Under the USMCA, most qualifying goods traded between the U.S., Mexico, and Canada are exempt from tariffs, provided they meet the agreement’s rules of origin. This includes many automotive components and subassemblies if they meet content thresholds.
Tariff Resources
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HTS Codes
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USTR Statement on Section 301 Tariffs (2018)
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NYT: Trump Suspends Tariffs on Mexico (March 2025)
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Fact Sheet: Trump Imposes Tariffs on Canada, Mexico, and China (Feb 2025)
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Executive Order: Addressing Certain Tariffs on Imported Articles (April 2025)
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Executive Order: Modifying Reciprocal Tariffs for Retaliation Alignment (April 2025)
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Executive Order: Reciprocal Tariffs to Address Trade Deficits (April 2025)
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Executive Order: Amendment on Low-Value Imports from China (April 2025)
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Executive Order: Modifying Reciprocal Tariffs After Talks with China (May 2025)
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Executive Order: Extending The Modification of The Reciprocal Tariff Rates (July 2025)
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Executive Order: Further Modifying the Reciprocal Tariff Rates (July 2025)
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Executive Order: Further Modifying the Reciprocal Tariff Rates to Reflect Ongoing Discussions with The People's Republic of China (August 2025)
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Executive Order: Modifying the Scope of Reciprocal Tariffs (September 2025)
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Executive Order: Modifying Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China (November 2025)
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Executive Order: Modifying Reciprocal Tariff Rates Between The United States and The People's Republic of China (November 2025)
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U.S. Supreme Court Decision: Learning Resources, Inc. v. Trump — IEEPA Tariff Authority (February 20, 2026)
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Presidential Action: Terminating Tariffs Imposed Under the International Emergency Economic Powers Act (February 2026)
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Presidential Proclamation: Temporary Import Surcharge Under Section 122 of the Trade Act of 1974 (February 2026)
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U.S. Customs and Border Protection Guidance on Removal of IEEPA Tariffs and Implementation of Section 122 Tariffs (February 2026)