ARTICLE | March 16, 2026

Recent developments in U.S. trade law have created a potential pathway for businesses to recover billions of dollars in tariffs that were imposed and subsequently invalidated under the International Emergency Economic Powers Act (IEEPA). Importers and supply chain stakeholders should carefully consider the implications for cash flow, compliance, and strategic planning.

Background: Unlawful Tariffs and a Legal Reset

In April 2025, sweeping tariffs were imposed on imported goods under IEEPA, a statute typically used to impose sanctions rather than trade duties. In February 2026, the U.S. Supreme Court held that IEEPA does not grant the president authority to levy tariffs, concluding that only Congress has the constitutional power to set taxes.

This ruling opened the door to refund claims because the tariffs remained in effect long enough to generate substantial duty collections, estimated in the hundreds of billions of dollars.

The tariff landscape businesses have been navigating

The IEEPA-based tariff program included a broad baseline rate and sharply higher country-specific rates at different points in time, including elevated tariffs on goods from China and increased rates impacting North American trade. Canada, for example, faced tariffs that were later raised. Mexico also faced IEEPA-linked tariffs tied to the southern-border emergency order.

This volatility made pricing, contracting, and supply-chain planning difficult, and it triggered litigation by importers arguing the program exceeded lawful executive authority.

Court of International Trade Clears the Way

On March 4, 2026, the U.S. Court of International Trade (CIT) issued an order directing U.S. Customs and Border Protection (CBP) to take the following actions:

1. Finalize pending import entries without applying the IEEPA tariffs.
   Under the court’s order, Customs must complete the final calculation of duties owed on an import shipment without including the invalidated IEEPA tariffs (this process is called “liquidation of unliquidated entries).”
2. Recalculate and correct recently finalized entries that are still legally open, removing the IEEPA tariffs.
   These entries may now be adjusted to remove the unlawful tariffs.  This process is known as “reliquidation” whereby Customs reopens and corrects a previously finalized duty calculation. Entries that were finalized but remain within the legal time period during which corrections are permitted are known as “non-final liquidated entries.”

If fully implemented, this approach would require refunds of duties paid on entries subject to the invalidated tariffs nationwide, not solely for the party that initiated the original litigation.

Importantly, the CIT’s order applies broadly. All importers of record whose entries were assessed under IEEPA tariffs may potentially benefit.

Implementation and Operational Uncertainty

Although the ruling is significant, the process for obtaining refunds is still developing.

U.S. Customs and Border Protection has acknowledged operational challenges associated with issuing mass refunds under its current systems. CBP estimates that processing refunds manually could require millions of labor hours. As a result, the agency is developing a streamlined electronic processing system to manage anticipated refund claims.

In addition, the CIT’s order may be appealed. Further litigation concerning the mechanics of refunds or the continued collection of alternative tariffs could delay implementation.

Businesses should therefore monitor developments closely.

What Businesses Should Do Now

While additional procedural guidance is forthcoming, importers should take the following practical steps:

Calculate how much was paid.
Prepare a comprehensive list of shipments that were assessed IEEPA tariffs. Include entry numbers, dates of importation, and the exact amounts of duties paid. This establishes the potential refund value and supports future claims.

Track the status of each shipment.
Determine whether each entry has been finalized by Customs. Refund eligibility depends on whether an entry remains open or is still within the legal time window for correction.

Be prepared to file a formal protest if necessary.
If an entry has already been finalized, a formal protest may be required to preserve refund rights. In most cases, protests must be filed within 180 days of liquidation. Missing this deadline may permanently eliminate the ability to recover duties.

Monitor official CBP guidance.
Stay informed regarding refund procedures, filing requirements, and electronic processing systems. Early preparation may reduce administrative delays once formal mechanisms are announced.

Strategic Implications

For many importers, this development presents a significant opportunity to recover costs tied to tariffs that have now been ruled unlawful. At the same time, the process is complex and subject to procedural uncertainty. Careful documentation and timely action are essential to protect potential recovery rights.

At Larson Gross, we will continue to monitor how this may develop and its implications for our clients and their businesses. If you have immediate questions, feel free to reach out below or call us at 800 447 0177.