The Supreme Court has struck down the IEEPA tariffs—now what?

On February 20, 2026, the Supreme Court upheld the lower court rulings that the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the authority granted by that statute.

This is a major legal inflection point, but it is not an “instant refund” for importers. You may have a path to recover IEEPA tariffs paid, but be aware that the administration is already moving to replace the IEEPA tariffs with another provision.

Trump’s response: a temporary 10% global tariff under Section 122

Within hours of the decision, President Trump announced a new tariff move: a temporary 10% global import surcharge under Section 122 of the Trade Act of 1974. Section 122 authorizes a temporary import surcharge of up to 15% and is capped at 150 days, unless Congress extends it by statute. In other words: Section 122 can bridge a gap, but it is not built to permanently replace a broad emergency tariff regime.The 10% tariff takes effect on February 24, 2026. Note that the administration has indicated it will raise this tariff to 15% in the near future.

Expect more pivots: Section 301 and Section 232 are back on the table

Reporting also indicates the administration intends to pursue additional tariff actions through more established trade authorities, including Section 301 (unfair trade practices) and Section 232 (national security). In practical terms, even though IEEPA tariffs were struck down, the broader “high-tariff environment” may continue—just with a different statutory foundation.

The importer playbook: how to reclaim IEEPA tariffs you already paid

Refund outcomes will depend on CBP implementation guidance and the procedural posture of each entry. In the meantime, merchants should take the following actions:

Step 1: Confirm you are the Importer of Record (IOR)

If you aren’t the IOR on the entry, you typically won’t be the party filing the core administrative claim.

Step 2: Build your entry list and isolate the IEEPA duty amounts

You need entry numbers and duty details that show which duties were assessed under the IEEPA measures. Get ACE access or ask your broker for your entry summaries.

Step 3: Separate entries into two buckets: liquidated vs. unliquidated

This is the key decision gate because it determines which remedies are even available. Liquidation is when CBP “closes out” your import entry by finalizing the duties and taxes owed—starting the clock on how long you have to dispute the charges or request a refund. It typically happens within 1 year of the entry date, unless CBP formally extends the entry or liquidation is suspended by law or court order.

• Unliquidated entries: you may have options to correct the entry before it finalizes through a Post-Summary Correction.
• Liquidated entries: the typical route involves a protest, and the statutory deadline is commonly 180 days from liquidation.

Step 4: Track, reconcile, and document

Even in the best-case scenario, refunds are rarely automatic. Merchants should expect:

• broker coordination,
• entry-by-entry tracking,
• and reconciliation to ensure refunds actually post to the correct party.

What This Means for Importers Moving Forward

The overturning of IEEPA tariffs is a major regulatory shift, but it’s not the end of tariff risk—it’s the beginning of a new phase. With replacement measures already emerging and additional authorities under consideration, importers should assume continued volatility rather than relief. The brands that navigate this environment successfully won’t be the ones reacting to each policy change—they’ll be the ones prepared with clear data, operational visibility, and partners who can translate regulatory shifts into actionable strategy. In global commerce today, adaptability isn’t a competitive advantage. It’s infrastructure.

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Frequently Asked Questions

What exactly did the Supreme Court decide regarding the tariffs? 

On February 20, 2026, the U.S. Supreme Court ruled 6-3 in Learning Resources v. Trump that the International Emergency Economic Powers Act (IEEPA) does not give the President the authority to impose tariffs. This landmark decision invalidates the sweeping “fentanyl” and “reciprocal” tariffs that had been levied on imports from nearly every U.S. trading partner.

Will the government automatically refund the IEEPA tariffs I paid?

No. The Supreme Court resolved the question of legal authority but did not prescribe a specific, automatic refund mechanism. In fact, dissenting Justice Brett Kavanaugh warned that the refund process is likely to be a massive “mess”. Importers must take proactive administrative or legal steps to claim their refunds from U.S. Customs and Border Protection (CBP).

Who is legally entitled to claim the refund? 

By law, only the Importer of Record (IOR)—the entity officially registered as importing the goods and paying the customs duties—has the standing to request a refund from CBP. If you are a downstream merchant who paid “tariff-inclusive” prices to a supplier, but you were not the IOR, you have no direct claim against the government. You will need to review your commercial contracts to see if you have a legal avenue to demand that your supplier pass the refund proceeds down to you.

How do I get my money back for recent shipments? (Unliquidated Entries) 

For recent shipments where CBP has not yet finalized your duty assessment (known as “liquidation,” which is set to automatically occur 300-314 days after entry unless CBP intervenes), the path is straightforward. You or your customs broker should electronically file a Post-Summary Correction (PSC) through the Automated Commercial Environment (ACE) portal. The PSC will request that CBP adjust the entry to remove the unlawful IEEPA duty lines before the entry liquidates. Ask your broker to request accelerated liquidation to speed up the process.

What if my shipments have already liquidated? 

Once an entry liquidates, the duty calculation becomes final unless you take action within a strict 180-day window.

• Within 180 Days: You must file a formal administrative protest (CBP Form 19), challenging the duty amount based on the Supreme Court’s ruling and requesting reliquidation and a refund.
• Past 180 Days or Denied Protests: You must escalate the matter by filing a lawsuit in the U.S. Court of International Trade (CIT). Under the CIT’s residual jurisdiction (28 U.S.C. § 1581(i)), you generally have two years from the time the tariffs were exacted to file a suit.

How will the refund payment actually be delivered to me? 

You will not receive a paper check. As of February 6, 2026, CBP mandates that all customs duty refunds be issued electronically via the Automated Clearing House (ACH). You must ensure you have an active ACE portal account and are enrolled in the ACH Refund program with valid U.S. banking information. 

When should I receive my refund? 

This depends on a number of factors. In the best-case scenario, you may receive refunds 3–4 months from PSC filing with accelerated liquidation (~ 90 days for CBP to process + up to 30 days to pay), with the caveat that CBP won’t pay until liquidation posts.

Do refunds include interest?

Often yes. When CBP refunds overpaid duties, the refund generally includes interest, calculated from the date you deposited the duties to the date the entry is liquidated or reliquidated. The current interest rate is 6% for corporations.

What documentation do I need to prepare for an audit or a refund claim? 

The government is expected to heavily scrutinize refund claims, so clean documentation is essential. You should build an exposure register tracking entries with Chapter 99 HTSUS codes (the codes used for IEEPA tariffs). Ensure you have:

• Entry summaries (7501s)
• Commercial invoices and packing lists
• Purchase orders
• Proof of payment to the supplier
• Proof of duty payment (ACH confirmations or statements)

How do I know which duties are IEEPA duties?

Ask your broker for a duty-type breakdown or line-level duty detail that isolates the IEEPA component. Look for HTSUS codes that begin with 990301 or 990302.

What is liquidation and why is it critical?

Liquidation is CBP’s final computation/assessment for an entry. CBP’s stated remedy options differ before vs after liquidation.

Do we need a lawyer?

Many merchants rely on brokers for PSC/protest filings, but trade counsel is often appropriate for large-dollar exposure, denied protests, or complex fact patterns.

Can I use Duty Drawback to reclaim IEEPA duties I paid?

Usually no—Duty drawback is an export-based refund program. You generally only qualify if the imported merchandise is exported or destroyed. It is not a general “tariff refund” mechanism.

Are all the Trump tariffs gone for good? 

No. The Supreme Court ruling only invalidated tariffs imposed under the specific authority of the IEEPA. Tariffs levied under Section 232 (e.g., steel, aluminum, automobiles) and Section 301 (e.g., Chinese intellectual property actions) were not challenged in this lawsuit and remain fully in effect. 

Does Section 122 mean tariffs are “back” immediately?

It can—temporarily—because Section 122 authorizes a short-term surcharge of up to 150 days absent congressional extension.

What’s the best way to stay up to date on global tariff and trade policy changes?

Global trade rules can shift quickly, so it’s important to monitor reliable sources that track regulatory updates in real time. One useful resource is TrumpTradeTracker.com, which provides ongoing updates on U.S. tariff developments, policy changes, and trade actions that may affect importers, exporters, and ecommerce brands operating internationally. Pairing external policy trackers with a logistics and compliance partner

Authored by Thomas Taggart

Head of Global Trade | Passport

Thomas Taggart is a cross-border commerce leader with more than 20 years of experience in international shipping and regulatory affairs. As the Head of Global Trade, Thomas helps ecommerce brands go global by simplifying international trade, tax, and product compliance issues. Prior to Passport, he brought international shipping solutions to market through multiple roles in UPS’s product development organization.