Importers Face an Uncertain Path to Recover IEEPA Tariffs After Supreme Court Ruling

Importers who paid tariffs imposed under the International Emergency Economic Powers Act (IEEPA) may assume that a U.S. Supreme Court decision invalidating those tariffs automatically triggers refunds. It does not. Recent litigation confirms that recovering unlawfully collected IEEPA tariffs requires affirmative legal action, and timing matters.

Understanding the post‑decision landscape is essential for companies seeking to preserve refund rights.

The Supreme Court Invalidates IEEPA Tariffs But Stops Short of Ordering Refunds
In Learning Resources, Inc. v. Trump, the U.S. Supreme Court held that IEEPA does not authorize the President to impose tariffs, concluding that tariff‑setting falls within Congress’ exclusive taxing authority under Article I of the Constitution. As a result, tariffs imposed pursuant to IEEPA were declared unlawful.

Notably, however, the Court did not order the government to refund tariffs already collected. That omission has placed the burden on importers to pursue recovery through separate legal proceedings.

Refunds Are Not Automatic
Neither IEEPA nor the Supreme Court’s decision provide a mechanism for automatic repayment of unlawfully collected tariffs. U.S. Customs and Border Protection (CBP) lacks independent authority to issue refunds based solely on a judicial declaration that tariffs were imposed without statutory authorization.

Absent further action, importers who paid IEEPA tariffs remain out of pocket—even after those tariffs have been invalidated.

Why Filing a CBP Protest is Not Enough
In most tariff disputes, importers challenge CBP decisions by filing administrative protests. That process does not work in the IEEPA context.

Courts have recognized that CBP’s role in collecting IEEPA tariffs is purely ministerial. Because CBP has no discretion to assess the legality of presidential tariff actions, it cannot grant relief based on claims that the tariffs themselves were unlawful. As a result, administrative protests challenging the legality of IEEPA tariffs are generally futile and do not provide an adequate remedy.

The Court of International Trade Is the Proper Forum
To recover IEEPA tariffs already paid, importers must file suit in the U.S. Court of International Trade (CIT). Courts have consistently held that these claims fall under the CIT’s “residual jurisdiction,” which covers challenges to tariff exactions where no other statutory remedy is available.

Through this process, the CIT has authority to:

• Declare the tariffs unlawful
• Order CBP to reliquidate affected entries
• Direct refunds of duties collected, with interest where permitted by law

Critically, this relief is available only to importers who affirmatively bring suit.

Litigation is Necessary to Preserve Refund Rights
In response to the wave of IEEPA refund actions, the Court of International Trade has issued administrative stays while higher‑court proceedings conclude. These stays do not resolve refund entitlement and do not eliminate the need for individual actions.

Importers who fail to timely file suit risk forfeiting their ability to recover tariffs—even though the underlying tariffs have been declared invalid.

Recent Court Development Signals Forward Movement
On March 2, the U.S. Court of Appeals for the Federal Circuit rejected the government’s request to further delay proceedings in the IEEPA tariff refund cases. The federal government had sought additional time following the Supreme Court’s decision invalidating the tariffs, but the court declined to pause the litigation. As a result, the cases are returning to the U.S. Court of International Trade for further proceedings.

While this development does not create an automatic right to refunds, it signals that the courts are moving ahead with resolving importer‑initiated refund claims. Importers that have not yet taken action should be mindful that recovery still requires affirmative litigation and compliance with applicable statutes of limitation.

What Importers Should Do Now
Companies that paid IEEPA tariffs should evaluate their exposure and act promptly. Key steps include:

• Identifying entries subject to IEEPA tariffs
• Assessing applicable statutes of limitation
• Determining whether litigation is required to preserve claims
• Coordinating with trade counsel on filing strategy

Early action remains the most effective way to protect refund rights in this evolving legal environment.

Please contact Richard Johnson, Anne Harvey or any member of the Phelps Construction/Design team if you have questions or need advice or guidance.