ZBRA · 10-Q · 2026Q4 · Full report

Trade Policy and Tariffs

ZEBRA TECHNOLOGIES CORP · 2026-11-03 · Importance 59 · Surprise 60

On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the executive branch to impose tariffs, invalidating certain import tariffs enacted in 2025. The case was remanded to the Court of International Trade and U.S. Customs and Border Protection (CBP), and Zebra sought refunds under CBP’s prescribed process. In the second quarter of 2026, Zebra deemed refunds of all previously paid IEEPA tariffs probable and recognized a benefit within Cost of Sales, including amounts attributed to its CF and AVA segments; by October 3, 2026, it had received part of the refunds, with the balance recorded in Accounts Receivable.

Key facts

• The U.S. Supreme Court ruled on February 20, 2026, that IEEPA does not authorize the executive branch to impose tariffs, invalidating certain import tariffs enacted in 2025; the matter was remanded to the Court of International Trade and CBP for refund administration. source
• ZEBRA TECHNOLOGIES CORP identified customs duties and trade-policy changes as potential risks because a large percentage of its sales and operations are outside the U.S. source