What Importers Need to Know as the Supreme Court Decides the Fate of IEEPA Tariffs

The U.S. Supreme Court is currently considering consolidated cases that will determine whether President Trump has authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose tariffs. This article provides an overview of the litigation's status, the key issues before the Court, and practical action items for importers to consider.

Background

Since taking office again, the Trump administration has imposed sweeping tariffs on imports from nearly every U.S. trading partner, invoking emergency powers under IEEPA. The new tariffs fall into two broad categories: (1) "trafficking tariffs" targeting Canada, Mexico, and China to allegedly address the flow of illicit drugs into the United States, and (2) "reciprocal tariffs" imposing baseline duties on imports from virtually all American trading partners to address what the administration characterizes as “unfair trade practices” and “trade deficits.”

Multiple lawsuits were filed in the U.S. Court of International Trade (CIT) — the specialized federal court that handles trade and customs disputes — challenging the tariffs. In May 2025, the CIT ruled that the Trump administration lacked the authority to impose the new tariffs under IEEPA, holding that IEEPA does not grant the president unlimited power to impose taxes or tariffs, which is authority typically reserved for Congress. On appeal, the U.S. Court of Appeals for the Federal Circuit affirmed CIT’s ruling, and the administration requested review by the Supreme Court. The principal consolidated matters now before the Supreme Court are  Learning Resources, Inc. v. Trump (No. 24-1287) and V.O.S. Selections, Inc. v. Trump (No. 25-250).

Supreme Court Review

On September 9, 2025, the Supreme Court granted the government's petition for certiorari in Trump v. V.O.S. Selections and consolidated the case with Learning Resources. The Court set an expedited briefing schedule and held oral argument on November 5, 2025.

The questions presented before the Court are (1) whether IEEPA authorizes the tariffs imposed by the administration, and (2) even if IEEPA authorizes the tariffs, whether IEEPA’s delegation of this normally legislative authority to the president is unconstitutional.

The Supreme Court has not yet issued its decision, and the case remains pending. Given the expedited schedule and the oral argument in early November 2025, a decision could be issued at any time.

Practical Implications

The outcome of this case will have significant implications across many industries for businesses that rely on imports. It has been estimated that over 34 million entries of goods subject to the trafficking and reciprocal tariffs have been made by more than 300,000 importers of record, resulting in estimated additional tariff revenues of approximately $130 billion. If the Supreme Court affirms the lower courts' rulings, affected importers may be eligible to recover duties paid for the affected tariffs. In addition, businesses that purchased imported items at elevated prices to cover tariffs imposed on importers also have an interest in whether those tariffs are refunded.

Potential Refund Mechanisms

Even if the Supreme Court invalidates the IEEPA-imposed tariffs, the path to refunds remains uncertain, but perhaps less uncertain than it was when the Supreme Court oral arguments began.   Around that time many larger importers (such as Costco) filed preemptive suits seeking to suspend the liquidation of their imports (314 days after entry) amidst concern that their refund rights might be foreclosed upon liquidation.

Key CIT rulings stepped into the breach: (1) The CIT has the power to order reliquidation and refunds when the government has unlawfully imposed duties, and (2) the CIT will retain jurisdiction over claims for refunds for the two-year statute of limitations (beginning on an entry’s date of liquidation) that applies to such claims. Importantly, the CIT explained that the Department of Justice has indicated (both in court filings and at oral argument) that if there is a final decision striking down the tariffs, liquidation will not affect the availability of refunds.

On December 23, 2025, the CIT also adopted a blanket stay order automatically pausing all lawsuits seeking tariff refunds until the Supreme Court issues its decision, with plans to set out appropriate next steps after the ruling. If the Supreme Court invalidates the tariffs, the CIT may lift the stay and issue implementation orders consistent with the Supreme Court decision, including, if appropriate, instructions to Customs and Border Protection (CBP) on reliquidation and refunds.

Recommended Actions for Importers

Until there is clarity from the Supreme Court, importers must continue to pay duties imposed by the affected tariffs, but could take the following steps now to position themselves for potential refunds should they be available:

1. Track Entry Data and Liquidation Dates. Importers should maintain detailed records of all entries where IEEPA duties have been paid. For each shipment, maintain (a) entry numbers, (b) entry dates, (c) HTS codes and descriptions, (d) type and amount of duties paid, (e) country of origin, and (f) projected liquidation dates. Importers should also retain copies of (w) CF-7501 entry summaries, (x) commercial invoices, (y) packing slips, and (z) bills of lading.
2. Confirm Access to CBP’s online ACE Portal. Importers should confirm they have access to CBP's Automated Commercial Environment (ACE) system, which provides real-time access to liquidation status and other critical entry information. Importers should regularly review entry data through ACE to identify entries approaching liquidation.
3. Monitor Liquidation Timing. While the CIT has confirmed its power to order reliquidation, importers should continue to monitor their entry liquidation dates and evaluate whether affirmative action is required, including actions recommended for consideration in this article.
4. Consider Filing Post-Summary Corrections to Adjust Duty Calculations. For unliquidated entries, a post-summary correction (PSC) allows an importer to electronically update its customs paperwork before it becomes final. A PSC could therefore be used to claim a reduction in duties if the Supreme Court invalidates the IEEPA tariffs. PSC availability and timing will depend on action by the courts and by CBP’s implementation guidance after the decision.
5. Consider Filing Protests for Liquidated Entries. While protests may not be necessary if CIT reliquidation authority is confirmed, for liquidated entries, importers nonetheless may decide to file a protest (Form CF-19) to preserve refund rights associated with any potential reliquidation. Any such protest is due 180 days after liquidation and should include references noting that the duties or tariffs are unlawful and acknowledge the pending decision.
6. Consider Filing a Protective CIT Lawsuit. Many importers have taken the extra step of filing protective lawsuits in the CIT to preserve refund rights. Filing in the CIT before liquidation is finalized offers an additional safeguard against procedural uncertainty. However, based on the CIT's recent rulings confirming its authority to order reliquidation and refunds, it is now reasonable to wait for the Supreme Court's decision before deciding whether to file suit, particularly regarding unliquidated entries.
7. Review and consider revising supplier contracts. Importers should re-examine the language in their supplier agreements and determine whether it is possible to revise or add clauses to shift tariff costs or to move to a delivered-duty-paid arrangement.
8. Review customer contracts for refund obligations. Importers should review customer contracts and consider whether any obligation may exist to refund monies previously collected from customers that may be tied to the affected tariffs, especially in the case of surcharges tied directly to the affected tariffs or where express or implied representations may have been made in connection with a price increase. On the flip side, purchasers of imports should examine those same contracts to determine whether importers are obligated to share any tariff-related refunds.
9. Await Further Guidance. If the IEEPA tariffs are invalidated, the CIT will likely consolidate pending cases and issue a refund process ruling for all importers. Late participation in the refund process may still be possible depending on the scope of the Supreme Court's ruling and the CIT's implementation framework.

We will continue to monitor these developments and provide updates as they occur.