In a Supreme Court decision, the International Economic Emergency Powers Act (IEEPA) tariffs have been deemed illegal. These were among the most significant of the newly instituted tariffs in the US over the past year and have served as a key tentpole of US trade policy nearly from the very beginning of this administration’s term. During their time in place, it is estimated that importers of all shapes and sizes paid over $133 billion in additional duties. But now that they’ve been overturned, the central question becomes: how do you claim a refund for illegal IEEPA tariffs, and who gets one? 

The answer is complicated and inextricably entwined with a web of economics, politics, processes, and decisions that occurred before the Supreme Court IEEPA decision was issued. It is not a simple process, despite feeling like it should be, and in a perfect world, would be. But this is an unprecedented event, and the institutions and people behind it are working to catch up as best they can. In the end, at its core, there are three primary reasons why something that seems like it should be straightforward is so convoluted, and why who ultimately gets a refund appears to be up in the air, beginning with the CBP liquidation process.

The CBP Liquidation Process Explained 

Understanding exactly why the US Government isn’t simply flipping a switch and refunding everyone who paid more begins with understanding the process for getting a refund from Customs and Border Protection (CBP) in general. For those unfamiliar, CBP uses a nearly year-long process to manage import duties and taxes of imported goods, with the end result referred to as ‘liquidation.’ 

We did a blog post covering this topic in detail last year, but broadly, the amount you pay to CBP when you import goods is a carefully calculated estimate, and it isn’t until those goods are ‘liquidated’ that you know in full what CBP-mandated cost of your goods will actually be, CBP then has up to 314 days to review your entry for duty and tax accuracy, and once it has come up with the official figure, you are either correct in your assessment, or you adjust, and then the import is liquidated. 

If, during this process, you have an issue with your import, say over an illegal tariff, your periods of complaint can take place before and after liquidation. Before liquidation, you are looking at a “post summary correction” (PSC) and after you are looking at a “protest;” both are detailed in their general usage in a previous blog post, but what is most important for this subject is that PSCs are handled in a very specific way before liquidation and on a case-by-case basis - typically involving a manual review. Protests occur after liquidation and are similar in some ways, but importantly, only have a 180-day window for initiating reliquidation. After that, CBP does not have the legal authority to act on those goods. 

You are encouraged to pursue this when seeking a refund, but understand that it is often a daunting task. This liquidation mechanism is the only way CBP is authorized to issue refunds for concerns of this nature, and as mentioned, it is a largely manual process for each import. Then, once those 180 days are passed after liquidation, the importer will need to begin seeking their money through different channels - most typically through the legal system.

Add to that the enormous scale, and the question of refunds through this system may become nearly insurmountable in anything approaching a reasonable timeframe. The 314 days between import and liquidation mean that there are hundreds of thousands of imports within CBP’s system that are imported but not yet liquidated, and even more that have already been liquidated but are too far afield to fall under CBP’s capacity to legally adjust them, even if they were tasked with doing so. Which brings us to the second challenge facing these refunds -  

Politics

With that in mind, a universal refund process will need to be created, and that’s going to require government involvement. To be incredibly clear, PCB has no position on the political backdrop of trade. Our sole focus is and will always be helping clients import into countries in compliance with that country's regulations. With that said, it would be disingenuous to avoid speaking on the reality that the current political environment has on the nature of these refunds. 

It is a matter of public record that the current US administration has been contemplative when it comes to issuing refunds, and while the idea of a more universal refund process is already being proposed, it seems they are prepared to let these matters be resolved in court on a case-by-case basis. Citing potentially “five years” of ongoing litigation lying ahead of those importers seeking recompense. 

Even putting aside a historically divided political apparatus, the reality, as in the case of CBP above, is that this is entirely unprecedented at every level - including politically, and devising and implementing the mechanisms for grant refunds began in earnest when the Supreme Court decision was made. Which means we don’t know when anything approaching a form of governmental policy will be in place. 

Some communication from CBP has indicated that things could be moving ahead in unseen ways, but exactly to what extent the politics that surround this will hinder or aid in the development of anything like a universal refund system, and how long it will take to come to fruition, remains to be seen. 

Legal Matters

The hard reality is that, at present, for the reasons listed above, an automatic process for obtaining a refund is out of reach for the moment. So, today, the best way for a business to get a refund is to pursue legal action. Legal experts agree that you are likely to get a refund if you have the required documentation and decide to sue for it. 

A good example of why that’s the case happened in December of last year, when many companies were approaching the courts, looking to sue over the tariffs, and many solutions, including possibly pausing liquidation, were suggested in court. 

The Court of International Trade (CIT) ultimately decided against most of them, choosing a ‘wait and see’ strategy. Relying on the assurances of the Department of Justice that they would not combat post-liquidation refunds should the Supreme Court strike down the tariffs. A sentiment that, at present, still appears to be holding true. 

The answer to who qualifies for an IEEPA refund is, undeniably, those who can sue for it, and if you have the means to do so, it seems likely you will get your money. But it does come with its own set of its own complications. For starters, this is an unprecedented event for the CIT as well, and legal experts are already speculating on avenues it may take to appropriately and efficiently navigate the situation. 

Which is to say nothing of the most obvious challenge - the cost. 

For smaller companies, the cost of pursuing legal action may not equal the amount you could potentially get back, with court filings at the CIT typically beginning around $400. For larger companies, they have time and resources to bide their time, and the legal costs required often pale compared to the billions these corporations have to gain. That means bigger companies may get their refunds sooner, while smaller companies may have to wait for the more universal refund system, should it ever come to exist at all.

What Should You Do Now?

For refunds on IEEPA tariffs in 2026, litigation is the only available path to a refund at this time, and if it makes financial sense, it is recommended that you pursue it. However, to have this be as smooth as possible, you should work closely with your broker to ensure you have the documentation and receipts required to make your case. 

Additionally, there is some debate over whether moving through the necessary refund steps at CBP is required before filing a suit, but it’s likely still wise to exhaust every available avenue. It is, again, advisable to work with your broker to file a post-summary correction or a protest if you still can, and ensure you keep records of those efforts. 

Lastly, be sure to register with CBP Automated Clearing House. Refunds from CBP now all come through ACH, and the only way to receive any refunds is to be registered for this system. We offer resources to help new users with ACH get acquainted with the registration process and initial learning curve. 

Right now, everyone is working to try to figure this out, and while the current path forward is legal, our Trade Advisory Team can help you be prepared for any of the above preparations, so don’t be afraid to get in touch. 

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