- with Senior Company Executives, HR and Finance and Tax Executives
Invoking emergency powers pursuant to the International Emergency Economic Powers Act (IEEPA), in February 2025, the Trump administration (Administration) imposed tariffs on products from China, Mexico, and Canada. In April 2025, the Administration imposed IEEPA tariffs on merchandise from most other countries. Since that time, importers have been paying reciprocal or country-specific tariffs, in addition to the General (MFN) duties, ranging from 10% to 41%.
The judicial challenge to the Administration's implementation of global tariffs under IEEPA continued on Nov. 5, 2025, when the U.S. Supreme Court (SCOTUS) heard oral arguments. Based on the expedited briefing schedule, a decision is expected by the end of 2025 or early 2026. The decision may address whether the Court strikes down all or part of the IEEPA tariffs and clarifies a process for importers to receive duty refunds. It remains to be seen whether the process would be administrative and/or judicial.
To date, over 90 importers have filed actions in the Court of International Trade (CIT), including well-known brands, retailers, and wholesalers. The complaints allege that the IEEPA duties are unlawful and demand a full refund for all IEEPA duties already paid, as well as those IEEPA duties importers will continue to pay pursuant to the Administration's Executive Orders. SCOTUS may determine that the IEEPA tariffs exceeded the president's authority under the statute, but may either issue an opinion covering all IEEPA shipments or a more nuanced decision.
Considerations for Importers
In the meantime, importers may wish to track entries and liquidation dates since February 2025. Should there be a judgment in favor of plaintiffs, there may be a process to recover tariffs paid under IEEPA, either administrative, post summary correction or protest, and/or judicial via an action in the CIT.
*Special thanks to Law Clerk/JDHenry Scherck ˘ for contributing to this GT Alert.
˘ Not admitted to the practice of law.
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.
