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Tariff policy is changing overnight, and all indicators signal that the Trump Administration will continue to impose tariffs to achieve its trade agenda. There are several lawsuits pending that may eventually invalidate some of the Administration's tariffs. However, importers should not sit around and wait for the dust to settle. Importers must act NOW and take proactive measures to protect their ability to seek refunds if tariffs are ultimately found to be unlawful.
IEEPA Tariffs at the Supreme Court
TheSupreme Court(SCOTUS) heard oral arguments inLearning Resources, Inc. v. Trumpon November 5, 2025. The case challenges whether the President has the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The Administration relied heavily on IEEPA to impose new tariffs – including fentanyl tariffs on China, Canada, and Mexico, and global reciprocal tariffs. Many trade lawyers are predicting that the Court will rule in favor of importers and find that IEEPA does not grant the President the authority to impose sweeping tariffs.
Potential Refunds & What Importers Should Do
Although it remains unclear how CBP will handle refunds (should SCOTUS agree with the lower courts), it is likely that once an entry is liquidated and the liquidation becomes final, CBP may not grant a refund of duties paid, regardless of SCOTUS's outcome. It will likely be the position that CBP only has to grant refunds to those parties that have a Court order ordering the refund. During the pendency of all of the Court cases, CBPmayexpedite the liquidation process for entries that are not subject to an injunction or agreement in Court with respect to prospective refunds.
To preserve their right to future refunds, importers should:
- File Suit in the CIT.File a preventative Court Challenge in which the lack of legality of the Tariffs is presented on behalf of specific importers. This would be filed on a prospective basis and would not wait for the liquidation of an entry and the denial of a protest. This would mean that if the tariffs are ultimately struck down, but only for those that are in Court, you would also benefit from the ruling without having to pursue a long additional post-decision process.
- Monitor liquidation dates closely.CBP must continue liquidating entries unless directed otherwise, so importers should track when each entry, especially those subject to IEEPA tariffs, is scheduled for liquidation.
- File protests on liquidated entries.If an entry has been liquidated, importers should submit a formal protest promptly to argue that IEEPA duties were unlawful. Properly filed protests preserve their right to a refund and pave the way for judicial review if needed.
- Seek extensions or delayed liquidation when feasible.Importers may request liquidation extensions or delay the process for entries impacted by IEEPA tariffs, which may buy time and help maintain eligibility for refunds, especially if "good cause" can be shown.
- Maintain thorough records.Proper recordkeeping will be essential in a future administrative process to recover duties paid. Missing entry summaries or proof of duty payments could jeopardize refunds.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
