The U.S. Supreme Court’s Feb. 20 ruling curbing the president’s ability to unilaterally impose tariffs is generally positive for U.S. ports, Fitch Ratings says. Longer term, a lower overall tariff environment may help improve import demand and recovery in U.S.-bound ocean freight volumes, which would support port revenue and liquidity.

The Supreme Court’s ruling invalidated broad-based tariffs on imports from most countries imposed under the International Emergency Economic Powers Act (IEEPA). Even with the 10% blanket tariff that the administration announced following the ruling, authorized through Section 122 of the Trade Act of 1974, the U.S. effective tariff rate (ETR) has fallen to 9.4% from 12.7%. ETRs for most countries remain unchanged, while 26 of the US’s largest trading partners will see their ETR decline. No country’s ETR increased.

However, tariff-related uncertainty remains and may temper port volume recovery. Long-term contractual guarantees with shipping lines and port tenants provide ports with a level of revenue stability despite volume fluctuations from tariff volatility.

The administration considers tariffs a key policy tool, and may use alternative authorities to levy import duties, although these levers are more limited in scope and, in some cases, time-bound or subject to additional procedures. These alternatives include raising the Section 122 tariffs to 15%, the maximum allowed. Section 122 tariffs will expire after 150 days, unless Congress votes for an extension. Challenges to the legality of the Section 122 tariffs and tariff opposition in Congress may undermine this tariff tool, leaving more narrow tariff options.

Other mechanisms the administration may use to raise import duties include the Trade Expansion Act of 1962 Section 301, which addresses unfair trading practices, has been applied to imports from China, while Section 232 has been used to target imports that are deemed a threat to national security, such as steel, copper, and lumber. Both sections require federal investigations. Section 338 of the Trade Act of 1930 has not yet been used by the administration, and there are limited precedents that clarify the authority that may be exercised under this law.

Volumes at major U.S. container ports rose marginally by 1.3% in 2025, though several ports began reporting year-over-year monthly declines in May 2025. Between May and December 2025, East Coast port volumes were relatively flat, up 0.4% compared with the same period in 2024, while West Coast port volumes declined 5.9% yoy. The yoy decline was partially driven by higher than typical volumes in late 2024 when cargo was temporarily rerouted from East and Gulf Coast ports to the West Coast during the International Longshoremen’s Association labor contract negotiations.
Source: Fitch Ratings