On Friday, February 20, 2026, the Supreme Court struck down tariffs enacted under the International Emergency Economic Powers Act (IEEPA). This ruling applies retroactively, meaning companies may be able to seek refunds for tariffs already paid.

The Supreme Court declined to address the process for tariff refunds. That question has been remanded to the lower courts, which will determine what refunds may be granted and whether the process for obtaining IEEPA tariff refunds will be administrative or require suit. However, timely action remains essential because refund eligibility may depend on whether the import entries are "liquidated" or "unliquidated."

Importers pay the estimated duties (including IEEPA tariffs) when the goods enter the country. These duties are finalized (liquidated) after 314 days from entry, and once liquidated, the amounts cannot be amended or refunded. As a result, there is a risk that IEEPA-related tariffs paid in February and March 2025 may no longer be subject to refunds, pending further guidance.

For unliquidated import entries within the 314-day timeline, an importer can typically file a Post-Summary Correction (PSC) with the U.S. Customs and Border Protection (CBP) to electronically amend the import documentation, or request an extension of the liquidation period. A PSC must be submitted at least 15 days before the scheduled liquidation date or 299 days after initial payment. Filing the PSC allows CBP to review and process the correction before liquidation occurs. If the change results in a refund, CBP would process it and the Department of Treasury will issue the payment. 

A formal protest can also be initiated by filing suit against CBP in the U.S. Court of International Trade (CIT). In light of this unprecedented situation, more than 1,000 refund-related cases have already been filed in the CIT. Companies such as Costco, Revlon, and Goodyear have filed protective suits to preserve their rights to potential refunds, even where liquidation deadlines may have passed.  

If you are a business owner affected by these tariffs, or have clients who are affected, now is the time to begin documenting the exact IEEPA tariff exposure, and confirming key entry and liquidation dates. Downstream purchasers who did not directly pay tariffs to CBP should also review their supply contracts to understand how IEEPA tariffs may have affected their costs. Those downstream purchasers may also have leverage with their vendors to request refunds. Our team is ready to assist with reviewing your documentation and developing a strategy tailored to your situation. Please contact us with any questions. We will continue to monitor developments closely and keep you informed as additional guidance becomes available.