Executive summary

This edition of Trade Talking Points provides updates on trade policy developments from the United States (US), United Kingdom (UK) and Canada, including the termination of International Emergency Economic Powers Act of 1977 (IEEPA) tariffs, the US's imposing a temporary 10% import tariff and the UK-European Union (EU) Gibraltar Agreement.

Latest US trade policy announcements

US announced termination of IEEPA tariffs

On 20 February 2026, President Trump announced the termination of the tariffs imposed under IEEPA. The announcement followed the ruling from the Supreme Court of the United States (SCOTUS) that the tariffs imposed under IEEPA were unlawful.

SCOTUS's verdict has removed tariffs imposed under IEEPA on goods from Canada, Mexico and China, as well as the global 10% and country-specific tariffs. However, tariffs imposed by the Trump Administration under Section 232 of the Trade Expansion Act of 1962 or Section 301 of the Trade Act of 1974 remain in place.

SCOTUS did not comment on whether or how, the US Government should process any potential refunds of IEEPA tariffs. The issue of IEEPA refunds lies with the US Court of International Trade (CIT), which on 4 March 2026 ordered US Customs and Border Protection (CBP) to liquidate all unliquidated entries that were subject to tariffs imposed under IEEPA, and reliquidate entries for which liquidation is not yet final, without IEEPA duties. The CIT explained that all importers whose entries were subject to IEEPA duties are entitled to the benefit of the SCOTUS decision and that the CIT's exclusive jurisdiction and national scope support uniform relief for these importers.

See EY Global Tax Alerts: US Court of International Trade orders CBP to liquidate and reliquidate entries without IEEPA duties, dated 5 March 2026; and US Supreme Court rules IEEPA does not authorize presidents to impose tariffs, dated 20 February 2026.

US announced temporary 10% ad valorem tariff

On 20 February 2026, President Trump announced that under Section 122 of the Trade Act of 1974, the US will impose a replacement 10% ad valorem tariff for 150 days on goods imported into the US, effective from 24 February 2026.

The following goods are exempt from the Section 122 replacement tariff:

• Certain critical minerals
• Natural resources and fertilizers that cannot be grown, mined or otherwise produced in the US or grown, mined or otherwise produced in sufficient quantities to meet domestic demand
• Certain agricultural products, including beef, tomatoes and oranges
• Goods that qualify for duty-free entry into the US under the United States-Mexico-Canada Agreement (USMCA)
• Textiles and apparel that qualify for duty-free entry into the US under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA)

Exempt goods are classified pursuant to their unique Harmonized Tariff Schedule of the United States (HTSUS) code.

See EY Global Tax Alert, US implements global 10% import tariff under Section 122 of the Trade Act of 1974, dated 24 February 2026.

US announced continuation of de minimis suspension

On 20 February 2026, President Trump announced modifications to Executive Order 14324, authorizing the ongoing suspension of duty-free de minimis treatment for all countries.

The continuation of the de minimis suspension entered into force for applicable goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 am ET 24 February 2026.

USTR announced Section 301 investigations would be commencing

On 20 February 2026, the US Trade Representative (USTR), Jamieson Greer, announced that the Trump Administration will commence investigations under Section 301 of the Trade Act of1974, in response to SCOTUS decision on IEEPA.

The investigations will identify any unreasonable or discriminatory acts, policies or practices by major US trading partners, focusing on areas such as:

• Forced labor
• Pharmaceutical pricing practices
• Discrimination against US technology companies and digital goods and services

In addition, the USTR announced that the Trump Administration would continue the ongoing Section 301 investigation processes, including those involving Brazil and China.

US published 2026 Trade Policy Agenda and the 2025 Annual Report on the Trade Agreements Program

On 2 March 2026, USTR Jamieson Greer submitted to Congress President Trump's 2026 Trade Policy Agenda and the 2025 Annual Report on the Trade Agreements Program.

The 2025 Annual Report provides a retrospective account of USTR actions over the past year, including:

• Negotiations with key trading partners to protect US jobs and expand export market access
• Use of trade policy to support domestic production, particularly for US farmers, ranchers and manufacturers
• The Administration's framing 2025 as a year in which new markets opened and US competitiveness improved

The 2026 Agenda sets out how the Administration's plans to extend this approach, with six stated focus areas:

1. Continuing and expanding Agreements on Reciprocal Trade (ARTs)
2. Enforcing existing trade agreements and US trade laws
3. Securing supply chains, including for critical minerals and strategic sectors
4. Conducting the mandatory USMCA review
5. Managing trade with China with an emphasis on "reciprocity and balance"
6. Promoting US interests in international forums, including the World Trade Organization

Canada trade policy announcements

Canada and India strengthen bilateral trade relations

On 2 March 2026, Prime Minister of Canada, Mark Carney, announced five Memorandums of Understanding (MOUs) with India as part of his diplomatic visit to Mumbai and New Delhi.

Both Canada and India signed two MOUs to intensify cooperation on critical minerals and energy sources, supporting technical and commercial engagement and diversifying supply chains.

In addition, Prime Minister Carney confirmed that Canada and India will conclude negotiations for a new Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.

Latest UK trade policy announcements

UK and EU publish UK-EU Gibraltar Agreement draft

On 26 February 2026, the UK and EU published a draft treaty outlining a comprehensive framework for Gibraltar's future relationship with the EU.

The agreement aims to provide a solution to Gibraltar's unique geographic and economic position and represents a step in the UK's and EU's resetting post-Brexit relations.

Key terms of the agreement include:

• A customs model designed to remove tariffs, duties and quotas on goods moving between Gibraltar and the EU
• Continued retention by Gibraltar of its existing indirect tax system, rather than adopting EU value-added tax (VAT)
• Commitments on labor standards, environmental protection and sustainability