On February 20, 2026, the Supreme Court ruled 6-3 that the sweeping global tariffs imposed under the IEEPA exceeded executive authority.
Immediately following this, the administration instituted a temporary 15% global tariff under Section 122 of the Trade Act of 1974. This new measure has a 150-day expiration.
While exceptions exist for Canada, Mexico, certain food products, and critical minerals, the sudden shift leaves many e-commerce brands waiting to see how their long-term import costs might actually be affected.
Here is a look at what we currently know, the potential upside, and how these changes intersect with your sales tax compliance.
The Big Positive: Potential Refunds
Let’s start with the good news. Because the Supreme Court ruled the original IEEPA tariffs were illegal, businesses may now be eligible for refunds on the tariffs they already paid.
The administration may be forced to refund more than $100 billion in tariff revenue to American importers. While legal experts, including Justice Kavanaugh, expect the recoupment process to be “a mess,” it still opens the door for businesses to eventually recover those extra costs.
The Unknowns: Pricing and Nexus Impact
The reality is, we don't fully know the long-term impact of this ruling yet. We are in a transitional period, and the dust hasn't settled.
However, we do know that the new tariff is currently active. And because tariffs increase product costs, many sellers may choose to adjust their retail prices.
If you adjust your pricing, it is important to be aware of how that intersects with state-level sales tax:
- Gross revenue increases: If you raise your product prices, your gross sales revenue automatically increases.
- Accelerated nexus thresholds: Even if your actual order volume stays exactly the same, that inflated gross revenue can push your business over a state's economic threshold much earlier than projected. You could suddenly owe sales tax in states where you previously had no obligation.
- Increased taxable base: Sales tax is calculated as a percentage of the total retail price. When you raise prices to cover tariff costs, the taxable base increases, resulting in a higher sales tax per transaction.
If you add a separate tariff fee at checkout:
- State-by-state rules apply: You might choose to keep your base product prices the same and add a separate tariff fee line item for your customers. If you go this route, be aware that whether or not sales tax is due on that specific fee varies widely depending on the state. For a detailed breakdown, check out our state-by-state guide on whether states require sales tax on tariff fees.
We’ve Got the Sales Tax Side Covered
Nobody knows exactly how this trade policy will look in 150 days (or even 10 days).
What we do know is that as an e-commerce business, you have enough to manage without letting shifting federal tariffs create state-level tax anxiety.
At TaxValet, our mission is to transform sales tax from a liability into an effortless background process. As your business adapts to these new tariffs, we adapt your tax compliance setup right alongside it.
We continuously monitor your sales data across all states. If any future adjustments to your retail prices push you over a new economic nexus threshold, we’ll catch it and handle the paperwork.
You focus on your brand. We’ll take care of the sales tax.
Book a no-obligation discovery call to learn more.