IEEPA Tariffs: Refund Opportunity Emerges for Importers Amid Supreme Court Challenge

The U.S. Court of International Trade (CIT) recently ruled that liquidation of entries subject to International Emergency Economic Powers Act (IEEPA) tariffs does not bar reliquidation and refunds if those tariffs are deemed unlawful by the Supreme Court.

According to a recent Customs and Border Protection (CBP) declaration in consolidated CIT litigation, importers had paid approximately $129 billion in IEEPA tariff duties and estimated deposits across over 34 million entries as of December 10, 2025. Importers, including manufacturers and distributors, are challenging President Trump's IEEPA tariffs in the Supreme Court, with a ruling anticipated by June 2026.

A decision in favor of importers could yield unprecedented refunds of challenged payments, which would impose massive administrative challenges for any injunctions or refunds, creating delays and further complexity. The Supreme Court could also limit refunds to lawsuit plaintiffs only, requiring other importers to file separate CIT actions. Even if the tariffs under IEEPA are struck down, broad tariffs could persist under alternative government authorities and import compliance will remain a top enforcement focus under the current administration.

Key Impacts of IEEPA Tariffs on Importers

• Cost Pressures: Tariffs of 10–25% on imports from China, Canada, Mexico, and others raise landed costs, and squeeze margins when the costs cannot be passed to customers.
• Supply Chain Shifts: Companies are accelerating nearshoring and supplier diversification to mitigate exposure. These tariffs have affected all importers, with those in the automotive, industrial manufacturing, electronics, and consumer goods sectors hit particularly hard.
• Cash Flow and Financial Strain: IEEPA tariffs complicate pricing strategies, forecasting, and lender covenants. Many importers have absorbed the added costs, hurting their bottom line. Those who passed them on to customers risk losing competitiveness. Additionally, the timing of tariff payments can cause a cash flow crunch.

Urgent Actions

To preserve your rights to potential IEEPA tariff refunds, carefully review these steps immediately:

• Beginning February 6, 2026, CBP will cease issuing most paper checks for refunds of duties, taxes, and fees, transitioning to Automated Clearing House (ACH) payments.
  • Enroll in the ACH Refund program through the Automated Commercial Environment (ACE) Secure Data Portal to receive these funds.
• If you have an ACE account, review and update your banking information in the ACE Portal prior to February 6, 2026, to avoid payment delays.
  • If you do not have an ACE account, consider establishing one immediately as it can be a vital resource for managing import regulations.
• Identify all import entries subject to IEEPA tariffs, including entry numbers, values, and duty amounts paid.
• Monitor liquidation dates for those entries via your ACE portal to track status and deadlines.
• Consider requesting extensions of liquidation where feasible to maintain flexibility.
• File protests promptly for entries that have liquidated, within the 180-day window under 19 CFR.
• Document all IEEPA duties paid, entry numbers, and liquidation status.
• File letters of intent within 320 days of transaction dates to preserve refund rights.
• Monitor Supreme Court developments and join CIT litigation if exposed.