IEEPA Tariff Ruling: What Shippers and Carriers Should Know

The Supreme Court’s tariff ruling on February 20 found that the Trump administration does not have the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), and it’s already reshaping the trade environment for U.S. importers. The administration has also signaled interest in a temporary 10% tariff under Section 122, though it cannot take effect until it is formally announced and implemented.

In a period where legal tools are shifting but tariff risk remains, shippers and carriers benefit most by focusing on clear best practices with their broker and logistics partners.

Understanding the IEEPA ruling and Section 122

The ruling removes IEEPA as a valid basis for imposing import tariffs. That eliminates the fast-track option that the administration had used to levy duties without traditional investigations.

Attention now turns to Section 122. Under this authority, the President can impose up to a 15% tariff in a national emergency when the trade deficit is considered too large or the value of the U.S. dollar drops too low. A Section 122 tariff can last for 150 days and only Congress can extend it. It is rarely used and does not require formal investigation, which is why it is being discussed as a replacement tool. Until a specific Section 122 measure is formally announced and implemented, it is not in force.

For shippers, the key takeaway is that the tools may change, but tariff exposure does not disappear. Planning with that in mind is more important than trying to predict every policy move.

Best practices for shippers in the next 1–3 months

Given the uncertainty around timing and structure of any new tariffs, shippers should work with their customs brokers and transportation partners on a few core actions.

Prioritize risk-based planning

• Map products and lanes with the highest tariff exposure and volume.
• Distinguish between critical SKUs that must move regardless of tariff and flexible SKUs that can shift timing.
• Align forecasts with broker partners so they can anticipate documentation and clearance needs.

Be deliberate with timing

• Where possible, advance purchase orders and sailings for high-risk SKUs that are already in the plan.
• Avoid “panic pulling” everything forward. Focus on what is realistic to move and receive without overwhelming distribution centers.
• Confirm with partners how quickly they can adjust bookings if there are formal announcements on Section 122.

Use FTZs and bonded warehousing strategically

• Evaluate whether Foreign Trade Zones or bonded warehouses can help defer duty, especially for high duty or long dwell goods.
• Coordinate transportation schedules with facility capacity so cargo can be processed and not simply parked in congestion.
• Ensure your broker, FTZ operator and transportation providers are aligned on documentation and timing.

Best practices with ports, drayage and inland freight

The ruling and possible follow-on tariffs are likely to influence where and when dray shipments arrive. How shippers and carriers work with their partners around the port makes a significant difference.

Plan port choices intentionally

• Balance traditional “go to” ports with secondary options that may offer more reliable service for certain origins or networks.
• Run simple scenarios with partners that compare total transit time, drayage distance and rail or truck options, not just linehaul rates.
• Consider spreading risk across more than one gateway if volumes and networks allow.

Treat drayage as a core strategy, not an afterthought

• Share vessel schedules, expected volumes and receiving capacity with dray providers as early as possible.
• Work with partners to build realistic appointment plans, account for terminal constraints and understand cutoffs.
• Use transloading and cross dock options when they reduce total dwell time, even if they add a handling step.

Prepare inland networks for volatility

• Review port of entry to distribution center lanes and confirm which should be routed as contract freight and which should be flexible spot.
• Coordinate with LTL and final mile partners on promotional calendars and replenishment timing so inbound spikes are not a surprise.
• Establish simple exception rules with partners for when to reroute, change mode or adjust delivery timing.

Best practices for carriers working with brokers and shippers

Carriers that communicate clearly with their broker and shipper partners are best positioned to benefit from any volume shifts tied to the IEEPA ruling or future Section 122 actions.

Clarify network strengths

• Share preferred lanes, geographies and operating patterns with brokerage partners.
• Be transparent about realistic daily and weekly capacity in key port and DC markets.
• Highlight which kinds of freight (drop/hook, live load, specific appointment windows) fit your operation best.

Agree on communication norms

• Set expectations on how quickly updates will be shared when vessel schedules slip or terminals slow.
• Use agreed channels for updates on breakdowns, weather or delays that affect high risk or time sensitive loads.
• Ask brokers for consolidated, lane level visibility rather than one off updates whenever possible.

Balance opportunity and reliability

• Approach short term volume spikes to strengthen long term relationships, not only chase price.
• Be clear about what additional volume you can realistically absorb without hurting service on existing freight.
• Work with brokers to identify repeatable lanes that can remain in your network after the immediate volatility has passed.

How to work with your broker partners through policy changes

Whether tariffs are imposed under IEEPA, Section 122 or another statute, shippers and carriers benefit from a few consistent practices with their brokerage partners.

Share information early

• Provide forecast ranges, not just firm bookings, so brokers can signal demand to carriers.
• Flag tariff-sensitive SKUs and lanes so brokers know where timing and reliability matter most.
• Keep customer specific constraints visible, such as delivery windows or storage limits.

Align on simple playbooks

• Agree in advance on what to do if transit times slip, ports congest or policy changes accelerate.
• Define thresholds for when to change ports, switch modes or split shipments.
• Document these playbooks so they can be applied consistently across teams.

Review performance and adjust 

• Hold regular, short reviews with brokers and carriers to look at on-time performance, dwell, exceptions and cost.
• Use those reviews to refine port choices, dray strategies and inland routing.
• Treat the reviews as a chance to update assumptions as policy and market conditions evolve.

Where NTG fits

NTG operates at the intersection of shippers, carriers and policy-driven volatility. Our teams monitor legal and market developments like the IEEPA ruling and any steps toward Section 122 tariffs, then translate them into practical guidance on port selection, drayage planning and inland capacity.

For shippers, that means support in mapping tariff exposed freight, designing realistic front load strategies and connecting transportation planning with customs and warehousing decisions. For carriers, it means clearer visibility into expected demand by lane and a steadier mix of freight that fits their networks.

If you are reassessing how your network should respond to the IEEPA ruling or a potential Section 122 tariff, NTG can work with you and your existing broker and customs partners to stress test plans and identify practical next steps that match your risk tolerance and service goals.