On November 5, 2025, the Supreme Court of the United States (SCOTUS) held oral arguments for Trump v. V.O.S. Selections, Inc., regarding the legality of the International Emergency Economic Powers Act (IEEPA). The case will ultimately decide whether the Trump Administration has the authority to impose tariffs under IEEPA. Importers and trade professionals are watching the case closely, but even if the IEEPA tariffs are thrown out, the new administration has made clear that it will pivot and use other legal avenues to impose tariffs. Since oral argument, multiple discussions have been held with the Department of Justice and the plaintiffs regarding any refund possibilities. Based on these discussions, it appears that the United States is anticipating losing this matter at the Supreme Court but wants to put barriers to recovery. The United States has also clearly stated that they intend to find other ways to impose similar duties.
The message is clear: even if the Supreme Court strikes down IEEPA tariffs, tariff exposure is here to stay. NOW is the time for importers to revisit their valuation practices, explore duty minimization strategies, and ensure they are taking every lawful step to minimize duty impact going forward.
Why Tariffs Will Stay Even if IEEPA Dies
Since the earliest days of the Trump Administration, the White House has made tariffs a cornerstone of their trade and "America First" policy. The President and Administration officials have repeatedly touted tariffs as one of the best tools available to level the international trade playing field, incentivize domestic production, and raise revenue for the United States.
IEEPA is just one of the legislative avenues the Administration has to impose tariffs. Below is a summary of tariff tools available to the Administration.
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If IEEPA tariffs are struck down, the Administration will simply pivot to another legal authority. This is not speculation. On January 9, 2026, National Economic Council Director Kevin Hassett said of the Supreme Court case: "Our expectation is that we're going to win, and if we don't win, then we know that we've got other tools that we can use that get us to the same place." He also said in a Fox Business Interview that the Administration has a backup plan ready to go that would allow tariffs to be put "back into place almost immediately, should the Supreme Court rule against us."
What Importers Should Do
Importers should view the current tariff environment as a long-term reality and proactively invest in strategies that legally minimize their duty exposure. There are several ways to LEGALLY minimize tariffs, including:
- Duty drawback
- Tariff engineering
- Country of origin change
- First sale
- Duty deferral
- Negotiate DDP Incoterms
Importers should also invest in compliance. The U.S. government has signaled that enforcement of trade law is a top priority and has levied hefty fines and even initiated criminal cases against importers evading duties.
Importers should:
- Conduct internal audits
- Refresh classification procedures
- Ensure the accuracy of valuation practices
- Revisit supplier agreements
- Tighten broker oversight
- Leverage technology
- Develop training for staff
- Strengthen recordkeeping practices
- Prepare for audits
Finally, importers should take proactive measures to protect their ability to seek refunds if the IEEPA tariffs are ultimately found to be unlawful. It may be the position that CBP only has to grant refunds to those parties that have a Court order ordering the refund. This would be based, at least in part, on an argument in equity – that while the Courts may have the authority to issue a refund, the issuance of a refund would be inequitable. Accordingly, importers should file a preventative court challenge in the Court of International Trade (CIT). This would mean that if the tariffs are ultimately struck down, but only for those that are in Court, importers would also benefit from the ruling without having to pursue a long additional post-decision process.
Our office will continue to closely monitor any case updates and will continue to keep you informed. Please review the following resources to stay informed on tariff updates and jumpstart your 2026 compliance program.
- Live Resource – Tariffs and Trade Deals
- Bloomberg Law: Tariff Classification Basics
- Bloomberg Law: Import Compliance & Training Programs
- Bloomberg Law: CBP's Recordkeeping Requirements
- Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration
- Webinar: Navigating Tariff Challenges: Mitigation Tools & Tactics
- Webinar: IEEPA Tariffs, Supreme Court Developments, & Refund Implications
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.
