Update: The Supreme Court struck down President Donald Trump’s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The 6-3 ruling states that it’s unconstitutional for the president to unilaterally set and change tariffs, because those powers belong to Congress. For more on what this ruling means and potential next steps for the Trump Administration, click here.
What This Means for Importers
The question on every importer’s mind: Will there be tariff refunds? Maybe. From a historical perspective, when a tax is overturned or deemed unconstitutional, taxpayers who previously paid it are most often due a refund. However, the path to recovery is uncertain, and importers must take proactive administrative and legal steps to secure refunds, as reimbursement is not automatic.
Immediate Actions for Importers
To preserve the right to a refund of duties paid, importers should follow these procedures:
- Audit and Document Records: Identify all entries subject to the challenged tariffs (e.g., HTS codes beginning with 9903.01 or 9903.02). Maintain local copies of entry summaries (Form 7501), commercial invoices and proof of duty payments.
- Track Liquidation Dates: U.S. Customs and Border Protection (CBP) typically finalizes ("liquidates") entries within 314 days of entry. This means that the CBP has up to almost a year to ensure that an importer pays the correct tariff. Prepare a spreadsheet to track the liquidation dates for each entry (including any that may have liquidated in less than 314 days), which will be important for claiming potential refunds.
- File Protests: For entries that have already been liquidated, importers must file a formal protest (CBP Form 19) within 180 days of the liquidation date. Missing this deadline by even a single day is an absolute bar to recovery of any duty refunds under normal procedures. The protest would indicate the importer’s objection to the collection of the IEEPA tariffs as illegal. CBP may suspend the protest while the Supreme Court’s decision remains pending. If the IEEPA tariffs are struck down and CBP approves the protest, it may refund the collected duties.
- Consider Litigation: Many importers, like Costco, have filed "protective" lawsuits in the U.S. Court of International Trade (CIT) to preserve their claims. It may be advisable to join such litigation and ensure standing if the Supreme Court's remedy is limited only to active litigants. It remains to be seen whether a judicial filing may become a universal requirement. The decision whether to file now should be made depending on import volume, expected liquidation timing, cost of litigation and potential tariff exposure.
- File Post-Summary Corrections (PSCs): If the Supreme Court strikes down IEEPA tariffs, importers then may be able to file PSCs for entries that have not yet been liquidated to avoid paying IEEPA tariffs on those entries. Importers can ask their brokers to file a PSC through the Automated Commercial Environment (ACE) to amend the entry and request a refund.
Potential Recovery Challenges
Importers need to prepare for several complexities:
- Replacement Tariffs: The administration may attempt to reinstate similar duties using alternative legal authorities, such as Section 232 (national security), Section 301 (unfair trade practices) or Section 338, which allows for tariffs up to 50% without a prior investigation. Additionally, the administration may also pivot to a 10% baseline tariff implemented under Section 122 of the Trade Act of 1974 instead of IEEPA. Section 122 allows presidents to impose tariffs of up to 15% for up to 150 days to resolve trade imbalances. All these actions could restore some level of tariffs if the IEEPA tariffs are rejected.
- Prospective vs. Retroactive vs. Partial Rulings: Though unlikely, it is not impossible that the Supreme Court could rule "prospectively," meaning the tariffs stop moving forward, but previously paid duties are not refunded. It is also possible the court could reject the wide range of IEEPA reciprocal tariffs, while preserving some IEEPA tariffs focused on particular emergencies such as fentanyl trafficking and illegal immigration (affecting imports from Canada, Mexico and China).
- Administrative Delays: CBP is reportedly preparing a new electronic refund system as of February 6, 2026, but the sheer volume of potential claims — estimated at up to $150 billion — could lead to significant processing delays.
- Contractual Reviews: Importers should review contracts with suppliers and customers to determine who is legally entitled to any recovered funds.
Navigate New Global Trade and Tariff Environment
Increasing tariffs signify a substantial shift in global trade policy. Withum can assist your business in creating an actionable plan to drive decision-making using our proprietary scenario modeling tool and our expertise in global trade, supply chain, transfer pricing and tariffs.
Preparing for What Comes Next
Even with a favorable ruling, it’s unclear what next steps the administration might take. Companies should prepare to identify entries where IEEPA tariffs were paid and have a plan for protecting potential refunds, whether by timely filing protests, filing suit at the CIT or both.
Navigating today’s uncertain tariff landscape is a critical challenge for multinational companies. Withum’s Global Transfer Pricing Strategies Services Team collaborated with Baker Hostetler’s International Trade and National Security Team on this article to share practical perspectives and strategic considerations that can help organizations think through trade and compliance changes with greater clarity and operational awareness.
Author: Marina Gentile, Partner and Lead, Global Transfer Pricing Strategies | [email protected]
Contributing Author: Mike Snarr, Baker Hostetler | [email protected]
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For more information on this topic, reach out to our Global Transfer Pricing Strategies Services Team today.
