About the Case

A major Supreme Court ruling may open the door to IEEPA tariff refunds

On February 20, 2026, the U.S. Supreme Court decided Learning Resources, Inc. et al. v. Trump and held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. In practical terms, that means the Court found the IEEPA-based tariffs were unlawful under that statute. For U.S. importers, this is significant: billions of dollars in duties were collected under the IEEPA tariff regime, affecting companies across virtually every sector. Depending on how refunds are implemented, some importers may be able to recover substantial amounts based on their paid duties and entry history.

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Which tariffs are implicated?

The ruling directly impacts tariffs imposed under IEEPA, including categories often described as:

  • “Reciprocal” tariffs tied to trade deficit-related rationale, and
  • “Trafficking” tariffs tied to alleged illicit drug influx concerns, including measures affecting imports from Canada, Mexico, and China.

Exact scope and implementation details may evolve as agencies and courts clarify the remedy process.

Will refunds be automatic?

Not necessarily. The Court did not lay out a single refund mechanism. As a result, there is uncertainty about whether refunds will be issued broadly and how U.S. Customs and Border Protection (CBP) will administer them.

Based on how CBP has handled broad tariff/fee refunds in other contexts, several pathways are possible:

  1. Automatic refundsCBP may be able to refund duties based on entry data already in the system—potentially using identifiers such as Chapter 99 HTSUS classifications that flagged the IEEPA tariffs on each entry.
  2. Court-ordered refund processCourts can direct CBP to issue refunds to parties who filed complaints and submit required documentation.
  3. Administrative claims processCBP could require importers to submit a formal refund claim with supporting documentation for the relevant transactions.
  4. Standard customs procedures (PSC / Protest)

    Refunds might require importers to use established tools such as:

    • Post-Summary Corrections (PSC) for unliquidated entries, or
    • Protests after liquidation (typically within the 180-day protest period).

Why timing matters for importers?

Even when the law is favorable, recovery can depend on process and deadlines.

Key timing concepts include:

  • Liquidation status: entries typically liquidate within a standard timeline (often around 314 days after entry).
  • Protest period: once an entry liquidates, a 180-day window generally applies for protests, after which CBP often treats the entry as “final.”

Because IEEPA tariffs began being implemented in 2025, it may be that many affected entries have not yet liquidated—but that won’t remain true indefinitely. The importers who are organized early are usually in the best position if the process requires filings or documentation.

What importers should do now

While CBP guidance and court-driven remedies develop, the practical “best practices” are straightforward:

  1. Identify all IEEPA tariffs paidPull entry data (via your customs broker and/or ACE) and compile a list of entries where IEEPA tariffs were paid.
  2. Compile documentationEnsure you have complete records for those entries (entry summaries, invoices, packing lists, and other shipment documents).
  3. Map liquidation status and deadlinesUnderstand which entries are unliquidated, which are liquidated, and which may be approaching key protest timing.
  4. Consider protective steps where neededFor entries nearing deadlines, importers may consider protective options (often with trade counsel support), such as requests for liquidation extensions or timely protests—depending on the facts and evolving guidance.
  5. Monitor CBP communicationsWatch for CBP bulletins, CSMS messages, and Federal Register notices that may establish automatic refund or reliquidation procedures.
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