As the U.S. Supreme Court prepares to rule on the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the Trump administration has clarified in a Department of Justice filing that importers could be eligible for refunds on all such levies if the Court finds them unlawful.
The consolidated IEEPA cases at the Supreme Court address whether the statute grants the president authority to impose sweeping tariffs on imports based on national emergency powers — a question that could reshape executive authority in trade policy.
Broadened Refund Coverage
In legal documents filed in the U.S. Court of International Trade, the Justice Department acknowledged that duties assessed on imports from countries like Brazil and India would also be refundable if the Supreme Court invalidates the tariffs. This position suggests that any tariffs enacted under IEEPA — even those not specifically challenged in the consolidated cases — would fall under the refund umbrella.
The clarification signals the administration’s intent to avoid piecemeal litigation and address refund eligibility comprehensively should the high court rule against the government’s legal footing.
High Stakes for Importers and Supply Chains
IEEPA tariffs have been a significant component of U.S. trade policy in recent years, affecting goods from major trading partners. Importers, freight forwarders, and customs brokers are watching closely, as a ruling against the tariffs could trigger refund claims potentially totaling tens — or even hundreds — of billions of dollars in duties collected since early 2025.
Industry experts caution, however, that even if the Court strikes down the tariffs, securing refunds may not be automatic or quick. Importers may need to navigate procedural requirements such as protests, reliquidation proceedings, or judicial actions in the Court of International Trade to reclaim duties already paid.
Preparations and Process Changes Underway
In anticipation of what could be an influx of refund activity, U.S. Customs and Border Protection (CBP) has announced a transition to fully electronic tariff refund processing, eliminating paper-based refunds in favor of a streamlined digital system beginning in February 2026. This modernization effort aims to reduce delays and errors while enhancing refund security.
CBP and legal specialists continue to urge importers to monitor entry liquidation dates and maintain thorough documentation of duty payments to preserve their rights in potential refund claims.
More about tariffs:
Staff Report
Staff Report
Dan Craft
