After the SCOTUS IEEPA Ruling: What Wisconsin Small Businesses Need to Know (and Do) — Before Risk Finds You
When the U.S. Supreme Court ruled on February 20, 2026, that the President cannot use the International Emergency Economic Powers Act (IEEPA) to levy sweeping tariffs, it didn’t end tariff risk—it changed the playbook. Within hours and days, attention shifted to other trade authorities that remain on the table, especially Section 122 of the Trade Act of 1974, and (to a lesser extent) Section 338 of the Tariff Act of 1930—alongside the still‑available Section 232 and Section 301.
For companies across Wisconsin—manufacturers, ag/food processors, med‑tech, climate‑tech, and SBIR/STTR‑active startups—this means pricing, sourcing, and go‑to‑market assumptions may again shift on short timelines. The best defense is proactive readiness. Anticipate legal issues before they become your legal issues.
WHAT CHANGED—AND WHAT DIDN’T
- SCOTUS ruled that IEEPA was not intended to rewrite tariff codes, striking down its use for broad tariff actions.
- The White House invoked Section 122, allowing a temporary import surcharge of up to 15% for 150 days.
- Other tools still available: Section 232 (national security), Section 301 (unfair trade practices), Section 338 (retaliatory duties).
QUICK GUIDE: WHAT EACH AUTHORITY DOES
- Section 122 — Temporary surcharges or quotas for balance‑of‑payments issues.
- Section 232 — National‑security‑based trade actions.
- Section 301 — Unfair trade practice enforcement via USTR.
- Section 338 — Targeted retaliation against discriminatory foreign practices.
COULD SECTION 338 PREVAIL AFTER SCOTUS?
Yes—if used narrowly and correctly. Section 338 is designed for retaliation against specific discriminatory acts by specific countries. Courts are more likely to uphold targeted use, and more likely to strike down broad use that resembles an end‑run around Congress.
THE NEAR‑TERM WISCONSIN IMPACT
- Cost pass‑throughs under Section 122 through July 24, 2026.
- Contract re‑openers and pricing‑related renegotiations.
- Supply chain rerouting around surcharge‑impacted goods.
- Ongoing exposure under Section 232 and Section 301.
- Possible targeted actions under Section 338.
PRO MOVES FOR ANTICIPATING RISK
- Map HS codes and supplier exposure.
- Update contracts with tariff/surcharge clauses.
- Screen ownership structures, not just entity names.
- SBIR/STTR applicants should align with enhanced due‑diligence standards.
- Build Wisconsin‑smart sourcing plans.
THE BOTTOM LINE FOR WISCONSIN
This is not about panic. It’s about professional readiness. The rules are shifting toward ownership‑aware, national‑security‑inflected, and faster‑moving trade tools. If you import components, sell globally, or seek federal innovation funding, your advantage will come from anticipating legal and regulatory turns—before they become your legal and regulatory issues.
“Anticipate tariff issues before they become YOUR tariff issues.”