SEMA Applauds Repeal of Greenhouse Gas Endangerment Finding
March 7, 2026MEMA is providing additional information and details concerning the actions adopted by the Administration following the Supreme Court’s release of its decision in Learning Resources v. Trump on February 20, 2024. There has been some confusion as to the impact of these actions as well as the continuation of certain critical flexibilities or exemptions which existed under the IEEPA tariffs. MEMA has outlined several points below in order to assist members and address questions which were submitted over the weekend. However, this is a fluid situation with significant details that need careful review and which are continuing to be actively monitored for updates. MEMA will continue to seek clarification as the Administration proceeds with removing the IEEPA tariffs and implementing the new Section 122 tariff.
Following the release of the Supreme Court announcement on Friday, February 20, 2026, President Trump signed a series of Executive Orders. These documents:
- Announce the removal of the IEEPA tariffs;
- Affirm that the de minimis treatment remains suspended and that this exception is not available; and
- Impose a new tariff under Section 122.
IEEPA Tariffs:
The first Executive Order, titled “Ending Certain Tariff Actions,” announces that the tariffs imposed pursuant to IEEPA “shall no longer be in effect and, as soon as practicable, shall no longer be collected.”
- Late on the night of February 22, U.S. Customs and Border Protection (CBP) released guidance and stated that IEEPA tariffs will no longer be collected for goods entered for consumption or withdrawn from warehouse for consumption, on or after 12 a.m. EST on February 24, 2026.
- This covers the following presidential actions:
- Executive Order 14193, Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border, 90 Fed. Reg. 9113 (Feb. 1, 2025), as amended;
- Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border, 90 Fed. Reg. 9117 (Feb. 1, 2025), as amended;
- Executive Order 14195, Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China, 90 Fed. Reg. 9121 (Feb. 1, 2025), as amended;
- Executive Order 14245, Imposing Tariffs on Countries Importing Venezuelan Oil; 90 Fed. Reg. 13829 (Mar. 24, 2025);
- Executive Order 14257, Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits, 90 Fed. Reg. 15041 (Apr. 2, 2025), as amended;
- Executive Order 14323, Addressing Threats to the United States by the Government of Brazil, 90 Fed. Reg. 37739 (July 30, 2025); and
- Executive Order 14329, Addressing Threats to the United States by the Government of the Russian Federation, 90 Fed. Reg. 38701 (Aug. 6, 2025), as amended.
- As noted in MEMA’s previous updates, the Supreme Court’s decision did not address the issue of refunds for IEEPA tariffs already paid. MEMA anticipates that the Court of International Trade will lead the way in addressing this concern. We are also watching for any further details from CBP.
De Minimis:
The second Executive Order reaffirms and continues the “suspension of duty-free de minimis treatment for low-value shipments… which will also be subject to the temporary import duty imposed under section 122.”
Section 122 Tariff:
The third Executive Order announced the imposition of a 10% tariff under Section 122 of the Trade Act of 1974 (19 U.S.C. 2132) (section 122) which “empowers the President to take action through surcharges and other special import restrictions to address fundamental international payments problems.” The new tariff will become effective on February 24, 2026 and will remain in place until July 24, 2026 . Under this authority the President can impose duties for a maximum of 150 days unless extended by Congress. The White House also issued a Fact Sheet concerning this action.
NOTE: In a subsequent communication on February 21, the President stated that the tariff would be increased to 15%. However, the White House has not issued any additional documents concerning the increase. Section 122 of the Trade Act of 1974 allows a tariff rate of up to 15% for 150 days.
Exempted Items: The new Section 122 tariff does not apply to a number of items. The exemptions are detailed in the Annexes (Annex I and Annex II) which were included with the proclamation.
Items that are not subject to the new Section 122 tariff include the following:
- Items covered by Section 232 tariffs (“all articles and parts of articles currently or that later become subject to additional import restrictions imposed pursuant to section 232 of the Trade Expansion Act of 1962, as amended.”), including passenger vehicles, certain light trucks, certain medium- and heavy-duty vehicles, buses, and certain parts of passenger vehicles, light trucks, medium- and heavy-duty vehicles, and buses.
- If only a part of an item is covered by a Section 232 tariff, then the new Section 122 tariff shall apply to the remaining part.
- USMCA-qualifying goods of Canada or Mexico.
- Various HTSUS codes as listed in Annex II, including certain critical minerals.
Goods in transit: There is also an exception for goods that were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the U.S., before 12:01 a.m. EST on February 24, 2026; and which are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EST, February 28, 2026.
Current Trade Frameworks and Additional Section 301 Investigations:
The U.S. Trade Representative’s office issued a statement, indicating the intent to pursue a series of Section 301 investigations and to continue the existing Section 301 investigations involving Brazil and China. Speaking to the press on Sunday, U.S. Trade Representative Jamieson Greer also stated that the bilateral agreements that the U.S. has negotiated remain in place. There is some concern over the potential impact of the latest developments on the U.S.-EU trade framework. The European Parliament was slated to vote on the implementing package for the agreement on February 24, 2026.
MEMA All-Member Advocacy Briefing
On Friday, February 27, 2026, at 12:00 p.m. EST, MEMA will host an all-member advocacy briefing for supplier-members. MEMA will provide an overview of the U.S. Supreme Court decision regarding the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs and the Environmental Protection Agency’s final rule on the Reconsideration of the 2009 Endangerment Finding and Greenhouse Gas (GHG) Vehicle Standards. This session will examine key developments and potential implications for the mobility industry. Information on how to register is forthcoming.
Senior Vice President, Government Affairs
MEMA. The Vehicle Suppliers Association
