IEEPA Tariffs at the Supreme Court: What Importers Need to Know About Duty Recovery
On September 9, 2025, the Supreme Court agreed to expedited review of two consolidated appeals challenging the legality of the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA). These include the so-called Fentanyl Tariffs on imports from Canada, Mexico, and China, and the broad Reciprocal Tariffs applied to most U.S. trading partners (together, the IEEPA Tariffs).
Lower courts, including the Court of International Trade (CIT) and the Federal Circuit, have held for various reasons that IEEPA does not authorize the president to levy tariffs. Nonetheless, those tariffs remain in place until the Supreme Court issues a final decision. For importers, this raises a pressing question: if the tariffs are struck down, will they be able to recover the billions of dollars already paid — and if so, how?
The Stakes for Importers
The duties imposed under IEEPA are not minor. They touch a wide swath of imports and have generated substantial revenue for the Treasury. If the Supreme Court rules that these tariffs exceed presidential authority, the United States could potentially be obligated to refund hundreds of billions of dollars in duties.
The government has already acknowledged as much. Treasury Secretary Scott Bessent stated earlier this month that the United States would “have no choice but to comply” with a refund obligation, even if it placed extraordinary strain on federal finances. But that assurance does not answer the practical questions importers care most about: how refunds would be processed, how long they would take, and what steps importers must take now to preserve their rights.
Possible Refund Scenarios
The path to refunds will depend heavily on the contours of the Supreme Court’s decision. Several outcomes are possible:
All IEEPA Tariffs Invalidated. If the Court holds that IEEPA does not authorize tariffs at all, CBP would need to unwind the IEEPA Tariff program entirely. Refunds would likely be due on all covered entries, but the government may insist on importer-by-importer claims rather than issuing automatic repayments.
Partial Invalidation. If the Court strikes down only certain tariffs (for example, the Reciprocal Tariffs but not the Trafficking Tariffs), refunds would be limited to those invalidated measures. Importers would need to document which of their entries were subject to the specific tariffs ruled unlawful.
Remand Without a Merits Ruling. If the Court resolves the case on jurisdictional grounds or remands for further proceedings, recovery could be delayed for months or years as lower courts sort out which tariffs are unlawful and what remedies are available.
Tariffs Upheld. If the Court finds that IEEPA does authorize tariffs, the current duties will stand, and importers will have no refund rights.
In the event that the tariffs are struck down, either in whole or in part, a protest will likely be required to recover the duties paid on liquidated entries. For unliquidated entries, there are a few proactive steps you could take to protect yourself.
Protecting Refund Rights Now
Importers do not need to wait for the Supreme Court’s ruling to begin protecting their ability to recover duties. Because CBP follows strict statutory timelines, inaction could result in losing refund opportunities altogether. A proactive approach is essential.
Track liquidations carefully. Importers should establish an internal system to identify and monitor all entries that were subject to IEEPA Tariffs. Maintaining a complete file — including entry summaries, invoices, payment confirmations, and related correspondence — will make it easier to support future refund claims.
Seek extensions and be ready to protest. By statute, CBP generally liquidates entries within one year, but extensions of up to three years are available upon request. Securing an extension can keep entries open long enough to benefit from the outcome of the litigation and extend the timeline for filing protests. If CBP moves ahead with liquidation before an extension is granted, importers should be prepared to lodge timely protests to keep their refund rights alive. In some cases, importers may also want to ask CBP to hold those protests in suspension pending resolution of the IEEPA cases.
Litigation as a backstop. If extensions or protests prove insufficient, further legal action may be necessary. This could include individual lawsuits or participation in class actions seeking recovery of unlawfully collected duties. The viability of these options will ultimately turn on how the Supreme Court addresses the underlying challenges to the IEEPA Tariffs.
Looking Ahead
The Supreme Court has ordered expedited briefing to conclude by October 30, 2025, with oral arguments scheduled for the first week of November. A ruling is likely by year-end. Until then, the IEEPA Tariffs remain in place — and the refund question looms large.
Importers should not assume that refunds, if ordered, will flow automatically. For entries that have already been liquidated, a protest would likely need to be filed to recover duties paid. Preserving claims now is the best way to avoid being left out later. In an environment where billions of dollars in duties may hang in the balance, vigilance and preparation are essential.
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into which tariffs apply to your operations, we invite you to contact us to schedule a consultation.