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Supreme Court Slashes Trump’s IEEPA Tariffs: What Nut Traders Need to Know

In a landmark 6-3 decision that has sent shockwaves through global commodity markets, the U.S. Supreme Court ruled Friday that President Donald Trump’s sweeping “emergency” tariffs are illegal (CNN). While the White House has already launched a “Plan B” to keep trade barriers in place, the ruling creates an immediate, and potentially lucrative, divergence for the nut industry, particularly for cashew importers.

For stakeholders in the cashew and nut trade, the legal victory is only the beginning of a complex new chapter in customs compliance and supply chain strategy.

 

The Ruling: Why the “Emergency Shortcut” Failed

The Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) (the 1970s-era law Trump used to bypass Congress) does not actually grant the President the power to impose tariffs.

Chief Justice John Roberts, writing for the majority, emphasized that the authority to “regulate importation” does not automatically include the power to “tax” it. “When Congress grants the power to impose tariffs, it does so clearly and with careful constraints,” Roberts wrote. “It did neither here” (Supreme Court of The United States)

Key Takeaway for Traders: The ruling effectively shuts down the administration’s ability to use “emergency” declarations to launch broad, global tariffs of unlimited duration.

 

The Immediate Pivot: Cashews vs. Other Nuts

Hours after the ruling, the White House issued a flurry of executive actions to “terminate and replace” the illegal IEEPA regime. However, the new landscape is not uniform across all commodities.

1. The Cashew “Win”

Under the administration’s new Section 122 proclamation (a temporary import surcharge) raw cashews have emerged as a surprising beneficiary.

  • Exemption: Raw cashews (HTSUS subheadings 0801.31 and 0801.32) are explicitly listed in the exempted annexes (White House).
  • Landed Cost: This “pivot” plausibly reduces tariff pressure on the high-volume U.S. cashew market compared to the previous regime.
  • Supplier Impact: This provides a potential demand buffer for major exporters in Vietnam and India.

2. The Surcharge Shock for Almonds, Hazelnuts, and More

Unlike cashews, most other nuts were not listed in the exemption annexes. These products are now subject to a temporary 10% to 15% surcharge (White House):

  • Hazelnuts: With a 15% surcharge, importers could face incremental costs of roughly $1.35/kg.
  • Almonds & Pistachios: While the U.S. is a dominant producer, niche import channels for specialty varieties will see immediate cost hikes.
  • Peanuts: Commercially treated as nuts in trade, shelled peanuts also face the new surcharge.

 

Strategic Risks: What Comes Next?

While the IEEPA duties are being deactivated, CBP announced it would stop collections at 12:01 a.m. ET on Tuesday, February 24 (U.S. Customs and Border Protection), the industry remains in a high-risk environment.

  • The $134 Billion Question: The government has already collected over $130 billion in illegal tariffs. The Court did not provide a clear path for refunds, leaving billions of dollars in “limbo” that lower courts must now sort out.
  • Time Limits: The new Section 122 surcharge is legally capped at 150 days and 15%. Traders should expect the administration to pivot again toward Section 301 or Section 232 authorities once this window closes (CBS News).
  • Retaliation Risk: For U.S. exporters of almonds, walnuts, and pistachios, the greatest threat is not the U.S. import duty, but the risk that trading partners will retaliate against U.S. exports in response to the new surcharges.

 

Recommended Action Plan

  • Re-paper Contracts: Ensure upcoming shipments include tariff-adjustment clauses to account for the “statutory pivots” likely to occur later in 2026.
  • Audit Product Forms: Since exemptions are subheading-specific (e.g., raw vs. roasted), importers should verify that their “prepared” nut snacks aren’t inadvertently triggering higher duties while raw kernels remain exempt.
  • Monitor Entry Timing: With the CBP cutover happening this week, precise documentation is critical to avoid unnecessary exposure to the old, illegal duties.