The Supreme Court recently heard a major case challenging whether the government had the legal authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The outcome could significantly affect importers—both in terms of whether these tariffs continue and whether any past payments might be eligible for refunds. While the arguments offered some early signals, the path forward remains highly uncertain.
Here is a brief update on what importers should know:
- Refunds remain uncertain. The government is expected to limit recovery, and courts have not found a Fifth Amendment violation—meaning refunds may not be issued even if the tariffs are struck down.
- If IEEPA is deemed unlawful, relief may only apply going forward. Importers may stop paying the tariffs in the future, but retroactive refunds are not guaranteed.
- Importers are highly encouraged to file their own lawsuit to preserve refund rights as the Supreme Court could restrict refunds only to parties already involved in the case.
- Protests may be filed, but they are likely to be denied because this is not a Customs decision. It is important to note that entries must have liquidated in order to be eligible for protest. Any protest would also require an Application for Further Review (AFR) so the case can be elevated to CBP Headquarters for attorney review. Importers should work closely with legal counsel, as the protest language must be very precise. If a protest is denied, the only remaining option is to take the case to the Court of International Trade (CIT).
- Even if IEEPA is ruled unlawful, similar tariffs could return under Section 301, Section 232, or other authorities.
- More than $90 billion has been collected so far, making any refund scenario legally and politically challenging.
If you have questions about how this may affect your imports or would like help evaluating potential next steps, please reach out to your local Laufer Customs Brokerage or Sales representative and continue to visit laufer.com for more market Insights.