On February 20, 2026, the United States Supreme Court held that tariffs imposed by the President under the International Emergency Economic Powers Act (IEEPA) are unlawful. In a 6-3 decision, the Court held that the IEEPA does not authorize the President to impose tariffs on imported goods, a power expressly vested in Congress under Article I, Section 8 of the Constitution, and that Congress had not delegated its tariff powers under IEEPA. Accordingly, President Donald J. Trump did not have authority to impose tariffs under IEEPA. Specifically, the Court found unlawful the “drug trafficking tariffs” imposed on goods imported from Canada, China, and Mexico under Executive Orders No. 14193, 14194, and 14195, and the trade deficit “reciprocal” tariffs imposed on “all imports from all trading partners” under Executive Order No. 14257.

The Court did not rule directly on the possibility of refunds for tariffs that had already been collected under the unlawful Executive Orders, but the decision materially strengthens refund claims for importers that paid duties under those tariffs. Moreover, in related litigation in December, the Court of International Trade (CIT), which has exclusive jurisdiction over tariff-related issues, noted that the government had “made very clear” in briefing “that [it] will not object to the [c]ourt ordering reliquidation of plaintiffs’ entries subject to the challenged IEEPA duties if such duties are found to be unlawful.” This, the Court noted, “would result in a refund of all duties determined to be unlawfully assessed, with interest.”

That said, there remains great uncertainty about both whether the government will issue refunds and the procedure for doing so, as discussed further below. In the meantime, more than 1000 companies, both small and large, that have paid tariffs, either directly or indirectly, have filed lawsuits in the CIT, seeking to preserve any claims they might have for a refund.

The U.S. Customs & Border Patrol (CBP) is responsible for the collection of the duties paid under the recently invalidated tariffs, and we will continue to monitor for refund guidance issued through that agency, in addition to the CIT.

Currently, there are two established ways to initiate a refund claim for tariffs: (1) seek a refund directly from CBP through administrative mechanisms, or (2) file a lawsuit in the CIT. Under the federal regulatory scheme generally applicable to tariffs collected by CBP, importers can seek to recover improperly applied tariffs through applicable administrative mechanisms, up to 180 days after the entry has been “liquidated” (i.e., when CBP determines the final calculation for the duties owed on the imported goods) which usually occurs 314 days after the date of entry – or the date when the goods are brought into the United States. After that time period, relief through the CIT might be the only means for seeking a refund.

Pending guidance from the government, importers remain uncertain as to whether, how, and when they might be reimbursed for unlawful IEEPA tariffs they have paid. Moreover, we cannot be certain as to the scope of claims eligible for refund, especially when considering the significant value of duties already paid under the IEEPA (more than $170 billion) and the possibility of government resistance, contrary to prior representations to the CIT. For example, it remains to be seen, even if refunds are granted, whether those refunds will be granted to all affected entries or just those that have been protested. Due to these uncertainties, many importers have been proactive in filing complaints in the CIT to preserve any rights they might have to a claim.

For some importers, taking both approaches (administrative and judicial) might be a prudent way to preserve rights, especially for those importers with high economic exposure or those with liquidated entries or entries nearing the end of the 314-day liquidation cycle.

Importers might consider several steps to identify strategies for seeking a refund:

• • Locate and preserve all import/duty documentation and/or all documentation demonstrating proof of payment.
  • Confirm inventory of all tariffs paid under IEEPA to establish an evidentiary basis for the claim.
  • Obtain legal advice regarding the uncertainties and the various procedural mechanisms and applicable statutory and regulatory deadlines.
  • Evaluate pass-through considerations – if tariff costs were passed downstream to customers or distributors, or for those downstream, review contracts to assess contractual obligations and potential refund allocation.
  • Monitor CBP and CIT decisions for guidance.
  • Monitor Congress for legislative changes that could alter any refund process.

This article summarizes aspects of the law and opinions that are solely those of the authors. This ‎article does not constitute legal advice. For legal advice regarding your situation, you should ‎contact an attorney.‎