The ongoing court challenges to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are creating uncertainty for many U.S. importers. Recent federal court rulings have questioned whether IEEPA authorizes tariff measures at all, and the Supreme Court has now agreed to review the issue. If the Court ultimately finds these duties unlawful, the decision could have major implications for duty recovery—but refunds may not happen automatically.
Our trade team has been monitoring these developments closely and advising importers on proactive steps to preserve potential refund rights. This overview is for informational purposes only and should not be treated as individualized legal advice.
Why the Supreme Court Case Matters
During the past few years, IEEPA has been used to impose new duties on a wide range of imports—from “reciprocal” tariffs covering almost all countries to special duties targeting certain goods from China, India, Brazil, Canada, and Mexico. Courts have already identified serious statutory and constitutional concerns with these measures, leading to the pending Supreme Court review.
If the Court strikes down any or all of the IEEPA-based tariffs, the government will have to stop collecting them. However, importers could face challenges recovering duties already paid unless they have taken steps to protect their rights.
Protecting Refund Rights
In the customs world, refunds don’t flow automatically when a trade measure is invalidated. Importers typically need to preserve their claims through specific legal channels. In the IEEPA tariff context, there are two primary ways to do this:
- File protests with U.S. Customs and Border Protection (CBP) – Protests can be used to contest liquidated entries within a strict 180‑day window.
- File a lawsuit at the U.S. Court of International Trade (CIT) – So-called “me too” suits allow individual importers to pursue the same core legal theories now before the Supreme Court.
These two actions can complement each other. Filing a protest alone may not be sufficient, since courts differ on whether presidential tariff decisions are even protestable. At the same time, not filing a protest could close off potential recovery on protestable matters. For that reason, many importers are pursuing a dual “belt-and-suspenders” approach.
Timing Is Critical
CBP typically liquidates entries on a 314‑day cycle, meaning some of the earliest IEEPA‑tariff entries are already liquidating. Importers should immediately check liquidation dates using CBP’s ACE portal and prepare protests before deadlines expire. Those considering CIT lawsuits should not wait for liquidation, as such actions can also be used to prevent entries from closing and to seek declaratory relief.
What Comes Next
There is always the possibility that Congress or the courts could later establish a simplified refund process, as they did in the 1990s after the Harbor Maintenance Fee litigation. But until that happens, importers should assume that recovery will depend on their own affirmative filings.
Given how quickly developments are unfolding, companies affected by the IEEPA tariffs should coordinate with counsel now to map out protest and litigation strategies. This will help ensure that, whatever the Supreme Court decides, they remain well-positioned to claim any refunds that may become available.
