Supreme Court IEEPA Ruling Reshapes the Tariff Picture for Sauna Importers

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 about 72 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.

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.

Key Timeline: Feb 20, 2026: Supreme Court strikes down IEEPA tariffs (6-3). Feb 20: Administration issues Section 122 replacement at 10%. Feb 21: Rate raised to 15% (Section 122 statutory maximum). Feb 24: New tariffs take effect. Jul 24, 2026: Section 122 authority expires (150-day limit).

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.

Industry sources estimate importers and their customers are absorbing 96% of tariff costs, consistent with broader economic research on tariff incidence. Some distributors pre-loaded inventory ahead of the February effective date. Others are passing costs through via mid-year price increases of 5-15% depending on product category. Not all brands face the same exposure: Chinese-manufactured sauna kits carry a 145% tariff rate, far above the 15% rate on European imports.

The mechanism changed but the math didn't. Importers still need to price for a 15% 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 15% surcharges through at least late July, and model for the possibility of a new tariff mechanism after that.