Supreme Court Strikes Down IEEPA Tariffs: What Importers Need to Know About Getting Refunds
- Jeff Chang
- 51 minutes ago
- 6 min read
On February 20, 2026, the Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not give the President authority to impose tariffs. Chief Justice Roberts, writing for the majority, was clear: IEEPA "contains no reference to tariffs or duties," and "until now no President has read IEEPA to confer such power."
This is the ruling that importers across the country have been waiting for. But while the legal question has been answered, the practical question -- how do you actually get your money back? -- is far from settled.
What the Court Decided
The Court struck down both the tariffs on goods from China, Canada, and Mexico (imposed under declared emergencies related to immigration and opioid trafficking, sometimes called the "fentanyl" or "trafficking" tariffs) and the "reciprocal" tariffs that imposed rates of 10% or higher on imports from nearly every country. The ruling was based on the separation of powers: the Constitution gives Congress, not the President, the power to impose taxes, including tariffs. Since IEEPA does not clearly delegate tariff authority to the executive branch, the tariffs were unlawful.
The Court also confirmed that the U.S. Court of International Trade (CIT) has exclusive jurisdiction over challenges to IEEPA tariffs. This is important because it determines where and how importers must pursue their claims.
What the Court Did Not Decide About IEEPA Tariff Refunds
The Court did not order refunds. It did not tell the government how or when to return the money. And it did not set a timeline.
Justice Kavanaugh, in his dissent, predicted the refund process would be a "mess." That prediction is already proving accurate. As of this writing, U.S. Customs and Border Protection (CBP) has only just stopped collecting IEEPA duties. The President has publicly stated his administration intends to fight refund claims. Treasury Secretary Bessent has suggested the process could take years.
Meanwhile, the scale of potential refunds is unprecedented in U.S. trade law. As of mid-December 2025, CBP had collected approximately $133.5 billion in IEEPA duties from over 301,000 importers across more than 34 million entries. With IEEPA tariff revenue running at roughly $500 million per day through early 2026, the Tax Foundation estimates that at least $160 billion in IEEPA duties had been collected by the time of the ruling. The exact total depends on the reporting date and methodology, but regardless of which estimate you use, it is an enormous sum.
What Importers Should Understand About IEEPA Tariff Refunds
Here is what we know right now about the refund landscape:
Refunds are not automatic. The Supreme Court's ruling does not trigger automatic reimbursement. Importers will likely need to take affirmative steps to claim refunds. Those who do nothing risk receiving nothing.
The CIT is the primary forum. The Supreme Court confirmed that the CIT has exclusive jurisdiction. Over 2,000 importers had already filed cases at the CIT before the ruling, including major companies like Costco. Since the ruling, more have followed -- FedEx filed suit seeking full refunds just days after the decision. In January 2026, the government stipulated that it would refund IEEPA tariffs for all current and future similarly situated CIT plaintiffs following a "final and unappealable decision" ordering refunds. However, the President's post-ruling statements suggest the administration may not honor that commitment without a fight.
Administrative remedies remain uncertain. Whether importers can use traditional customs protests under 19 U.S.C. § 1514 to recover IEEPA duties is an open question. Before the ruling, the CIT and the Federal Circuit held that CBP's collection of IEEPA tariffs was "ministerial" -- meaning CBP was simply following executive orders, not exercising its own decision-making authority -- and therefore not subject to protest. Some practitioners now argue that the Supreme Court's ruling changes this analysis and that protests may become viable, particularly once CBP issues formal guidance. Others maintain that CIT litigation under 28 U.S.C. § 1581(i) remains the only reliable path. Post Summary Corrections (PSCs) may also be available for entries that have not yet been liquidated. As of this writing, CBP has not announced any administrative refund procedure, and the question of whether protests will work for IEEPA duties has not been definitively resolved.
Deadlines still apply. The statute of limitations for filing a CIT action under § 1581(i) is generally two years from the date the cause of action first accrues, which could be the date the tariffs were paid or the date of liquidation, depending on the circumstances. For entries that have already been liquidated, the clock is running. If protests turn out to be a viable path, the deadline is 180 days from the date of liquidation. Either way, importers who wait for the process to become clearer risk missing their window entirely.
Documentation is critical. Regardless of which refund path becomes available, importers will need records of every entry on which they paid IEEPA duties. This includes entry packets (CBP Forms 3461 and 7501), commercial invoices, proof of payment, and packing lists. If you do not already have these records organized, now is the time.
New Tariffs Are Already in Effect
Within hours of the ruling, the President signed a new executive order imposing tariffs under Section 122 of the Trade Act of 1974. The initial rate was set at 10%, and on February 21, the President announced via Truth Social that the rate would increase to 15% for all countries -- the maximum allowed under Section 122. (Note: as of this writing, some sources report that official CBP systems have not yet fully reflected the 15% rate, though multiple government statements and proclamations reference it.) These tariffs took effect on February 24, 2026, and are authorized for 150 days (through July 24, 2026), unless modified, terminated, or extended by Congress.
Section 122 tariffs are legally distinct from the IEEPA tariffs the Court struck down. They come with their own set of rules, exemptions, and limitations. Some products that were subject to IEEPA tariffs are exempt under Section 122, while the administration has signaled it will use additional authorities (Sections 232 and 301) to fill any gaps.
The bottom line: tariffs have not gone away. But the IEEPA tariffs you already paid were unlawful, and you have a right to pursue refunds for those payments.
What You Should Do Now
1. Gather your records. Work with your customs broker to pull entry data from CBP's Automated Commercial Environment (ACE). Identify every entry where you served as importer of record and paid IEEPA duties. Compile entry packets, proof of payment, and any correspondence with CBP.
2. Determine the status of your entries. Entries fall into two categories: liquidated (finalized by CBP) and unliquidated (still pending). The refund procedure and deadlines differ depending on which category your entries fall into. Your customs broker or attorney can help you determine this.
3. Consult with an attorney who practices before the CIT. Given that the CIT has exclusive jurisdiction and the government has signaled it will resist refund claims, importers who want to protect their rights should seriously consider filing at the CIT rather than waiting for an administrative process that may never materialize. Filing at the CIT preserves your claim and puts you in the strongest possible position.
4. Do not wait. Statute of limitations periods are running. The government's posture is adversarial. Importers who act early will be better positioned than those who wait to see how things develop.
How Chang Law Group Can Help
Attorney Jeff Chang is admitted to practice before the CIT. If you are an importer or business who paid IEEPA tariffs and want to understand your options, contact us for a consultation. We also serve Mandarin-speaking clients.
Contact:
Phone: (617) 307-1238
Email: info@jchanglaw.com
WeChat: ChangLawGroupLLC
This article provides general information only and is not legal advice for your specific situation. Reading this post or contacting Chang Law Group does not create an attorney-client relationship. Customs law involves strict deadlines that can permanently bar claims if missed, and tariff refund procedures are evolving rapidly. This article may not reflect the most recent developments or apply to your particular circumstances. Consult Chang Law Group LLC to evaluate your specific situation and options.