Supreme Court IEEPA Ruling Reshapes the Tariff Picture for Sauna Importers
By Arlene Scott
Senior Wellness Correspondent & Hospitality Consultant
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The February 2026 ruling struck down IEEPA tariffs, but the 10% Section 122 replacement keeps pressure on European sauna imports.
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On February 20, 2026, the Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. The decision invalidated the IEEPA-based tariff regime that had been applied to imports from multiple countries, including the EU’s member states where most premium sauna equipment originates.
For a few hours, it looked like the tariff burden on European imports might ease. Then the administration moved.
The Section 122 replacement
On the same day as the ruling, President Trump issued a Proclamation imposing a replacement 10% global tariff under Section 122 of the Trade Act of 1974. The new surcharge took effect February 24, 2026, and applies for a 150-day period (through July 24, 2026). The following day, via social media, the president announced the rate would be set at 15%, the statutory maximum under Section 122. No formal action implemented that increase, and the surcharge took effect at 10%.
For sauna importers, the practical impact is clear: European heaters, controls, and wood products still face a meaningful surcharge on top of their base duty rates. The mechanism changed; the cost pressure didn’t.
What it means for the sauna industry
Harvia, HUUM, Narvi, IKI, and thermally modified wood producers like Thermory and Lunawood ship the bulk of the premium sauna products sold in North America. These products already carry base duties (sauna heaters at HTS 8516.29 face a 3.7% base rate, prefab sauna cabins at HTS 9406.10 face 2.6%), and the Section 122 surcharge stacks on top.
A January 2026 Kiel Institute study estimates that US importers and their customers bear 96% of tariff costs, with foreign exporters absorbing about 4%. Not all brands face the same exposure: where a product is made, not where the brand is based, sets the rate it pays.
The mechanism changed but the math didn’t. Importers still need to price for a 10% surcharge on top of base duties, at least through July.
What happens after July 24?
Section 122 authority is limited to 150 days. After July 24, the administration would need congressional action or a different legal mechanism to maintain the surcharge. Trade lawyers are watching closely, but the political dynamics of an election cycle make predictions difficult. Importers should plan for multiple scenarios.
The IEEPA ruling was a significant legal check on executive tariff authority, but the Section 122 replacement means sauna importers aren’t getting relief anytime soon. Plan for the 10% surcharge through at least late July, and model for the possibility of a new tariff mechanism after that.
