Trump’s Emergency Tariffs Deemed Unlawful: Can Importers Recover Billions Paid?

The U.S. Supreme Court ruled 6–3 that the International Emergency Economic Powers Act (IEEPA) does not authorize President Donald Trump to impose tariffs. Tariff authority rests with Congress, not the president. As a result, the legal basis for tariffs collected under IEEPA is invalid, and importers may seek refunds of duties already paid.

Tariffs imposed under IEEPA since 2025 are estimated at about USD 133.5 billion. Affected measures include a 10% global baseline tariff, reciprocal tariffs, and country-specific tariffs on China, Canada, Mexico, Brazil, Russia, Cuba, and Iran. Tariffs imposed under Sections 232, 201, and 301 are not affected.

Can Importers Recover Tariffs Paid Under IEEPA?

The Court did not set a refund process or timeline. Refunds will likely require administrative action and possible litigation.

Companies including FedEx, Costco, Toyota, BYD, Goodyear, and Alcoa are seeking refunds. Senate Democrats have proposed legislation to mandate refunds with interest, prioritizing SMEs.

How to Pursue a Tariffs Refund

At present, no unified refund mechanism has been formally confirmed by U.S. Customs and Border Protection (CBP) or the Treasury Department. Legal experts emphasize that importers must act proactively.

First, importers must continuously monitor the liquidation status of each import entry.

Once liquidation is finalized, missing the statutory deadline may permanently bar any refund claim.

Second, for entries that have already been liquidated, importers must file a formal administrative protest with CBP within 180 days of the liquidation date. Failure to meet this deadline is treated as a legal waiver of refund rights.

For entries not yet liquidated, immediate action is required. Importers may submit post-summary corrections requesting CBP to revise the entries.

Once reconciliation is completed, CBP would refund any overpaid duties.

A critical operational issue is that the ACE (Automated Commercial Environment) system only accepts corrections submitted by licensed customs brokers. Importers must therefore decide whether to rely on their broker directly or have trade or legal counsel prepare documentation for broker submission.

For already liquidated entries, whether filing a protest alone is sufficient to preserve refund rights remains unclear. Legal experts caution that litigation may still be necessary, according to FreightWaves.

Given the uncertainty surrounding refund procedures, importers are advised to immediately confirm all tariff payments and preserve documentation, including generating comprehensive ACE reports to identify:

• IEEPA tariffs paid on goods imported from China, Canada, and Mexico

• Reciprocal tariffs paid on goods from any country of origin

Regardless of how legal pathways evolve, a detailed and itemized tariff record is essential to support future refund claims.

As of earlier this month, CBP has confirmed that all future refunds will be issued through the Automated Clearing House (ACH) system.

Refunds are legally plausible but procedurally uncertain.

President Trump has announced a new 10% global tariff under Section 122, effective Feb 24, limited to 150 days.