Update to potential IEEPA tariff lawsuit refunds
Date of publication: December 17, 2025
Overview
On December 15, 2025, the Court of International Trade (CIT) issued a decision in the pending IEEPA litigation providing additional clarity on the pending Supreme Court ruling regarding the tariffs and steps importers are considering to protect possible refunds should the court deem the tariffs illegal.
The court indicated that IEEPA tariffs may not be recoverable simply by filing administrative protests against liquidations under 19 U.S.C. § 1514(a). The decision stated filing a protest as a means of securing refunds would be "an utter futility" as "Customs has no authority to make any decision regarding the legality or constitutionality of the Executive Orders at issue."
The CIT's decision clarified that even if an entry has already been liquidated, the Court still has clear authority to order reliquidation and issue refunds when the government has unlawfully collected duties. Additionally, the government cannot argue in court that liquidation prevents the Court from ordering refunds in ongoing cases.
The CIT also pointed out that the Government has consistently stated "that [it] will not object to the [c]ourt ordering reliquidation of plaintiffs’ entries subject to the challenged IEEPA duties if such duties are found to be unlawful," which prevents the government from later making a contrary argument.
It is important to note the court’s decision applies solely to pending court cases at this time.
Background
Over the past months there has been increasing interest in the trade community in potential refunds if the Supreme Court determines that the assessment and collection of tariffs under the International Emergency Economic Powers Act (IEEPA) is unlawful.
The United States Supreme Court is presently reviewing the legality of President Trump’s IEEPA tariffs. Although a decision is anticipated in the near future, importers have been advised to evaluate measures for safeguarding their rights to potential duty refunds should the tariffs be invalidated. At this time, it remains uncertain whether such refunds will become available and, if so, what actions will be required to obtain them.
In November and December 2025, numerous importers initiated preemptive litigation at the Court of International Trade (CIT) to safeguard their rights to refunds should the Supreme Court invalidate the IEEPA tariffs. These actions were motivated by concerns that, as their imports began to be liquidated, the statutory period for appealing customs duties to the CIT was commencing.
Previous options considered
There are a number of options that have been previously discussed by industry experts as a way for importers to protect possible refunds should the Supreme Court rule IEEPA tariffs are illegal. Based on the CIT’s decision December 15, 2025, some of these options may no longer be viable paths.
- Protests:The standard procedure for seeking a duty refund is to submit a formal protest for each import entry within 180 days of the date of liquidation. While most entries are liquidated 314 days after the date of entry, CBP is not strictly required to adhere to this timeframe and has, on occasion, liquidated entries sooner. It is advisable for importers to closely monitor the status of their entries and file timely protests for each liquidated entry that challenges the legality of the IEEPA tariffs. The recent decision by the CIT indicates this may not be necessary.
- Court action filed by the importer:If the protests are denied, importers may need to file cases in the U.S. Court of International Trade (“CIT”) to preserve their refund claims. Importers would need to continue to monitor the situation and be aware of approaching deadlines. Additionally, a court action could be filed by the importer prior to liquidation. This focuses on concerns that once an entry is liquidated, the importer potentially would be unable to obtain IEEPA refunds. In this example, it would be necessary for each importer to file its own complaint in the CIT to prevent CBP from liquidating the importer’s entries. The recent decision by the CIT indicates this should not be necessary. Finally, importers can consider filing an action now under 28 USC 1581(i) seeking refunds of duties already paid and, if necessary, enjoining further collection and/or entry liquidations. Any such case is likely to be stayed pending the Supreme Court decision.
- Suspension/extension of liquidation:With liquidation dates now approaching for the first IEEPA fentanyl tariffs, importers have considered requesting liquidation extensions from CBP to provide additional time while awaiting the Supreme Court decision. However, CBP has stated they will not provide extensions for this purpose. The recent decision by the CIT indicates that this step is unnecessary.
- Automatic refunds:It is also possible that duty refunds will be issued automatically, without importers having to take any action. This might come in the form of a Court order based on the existing litigation, Congressional legislation, or Executive order. Conversely, even if the U.S. Supreme Court strikes down the tariffs, it is uncertain whether the administration will support a duty refund process for IEEPA tariffs paid on shipments entered prior to the Supreme Court decision. In that event, further litigation may be necessary.
Under a different legal theory, the Government could claim that recovery of IEEPA tariffs will be limited to importers who filed their own individual claims in the CIT. Individual claims should be filed within two years of the date IEEPA tariffs were enacted.
Conclusion
In practical terms, there are two likely options for refunding importers if the Supreme Court rules the IEEPA tariffs unlawful and mandates reimbursement. U.S. Customs and Border Protection (CBP) may either initiate an administrative procedure to refund the IEEPA tariff payments proactively, or importers may need to pursue legal action to recover amounts owed.
Regardless of the pathway, the statute of limitations for seeking such refunds is two years from the date of the relevant action—most conservatively interpreted as the publication date of the tariffs. The IEEPA tariffs imposed on imports from China in response to the opioid crisis, as well as those on imports from Mexico and Canada, were published on February 7, 2025. The reciprocal IEEPA tariffs affecting other countries were published on April 7.
This article is not intended to provide legal advice, and companies should engage their legal counsel and additional subject matter experts to determine the most appropriate approach to this matter. Future court cases and actions, of course, could impact this week’s decisions and companies should continue to monitor this closely.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk and regulatory compliance as we move into 2026, contact your Account Manager or Client Success Manager.