The Supreme Court ruled TODAY (February 20, 2026) that President Trump’s IEEPA (International Emergency Economic Powers Act) tariffs are unconstitutional.
This case challenged tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which included:
- Fentanyl-based tariffs on China (February 2025)
- Tariffs on Mexico and Canada (February 2025)
- “Liberation Day” global/reciprocal tariffs (April 2025)
Businesses could be owed over $180 billion in refunds after the Supreme Court struck down tariffs. Refunds are top of mind for everyone, but this ruling does not address how they will be administered.
Key Refund Mechanisms:
Option 1: Court of International Trade (CIT) Filings (Most Secure)
- The CIT has confirmed that it has authority in these 1581(i) IEEPA matters to order refunds through reliquidation if the IEEPA tariffs are ultimately held unlawful
- Over 2,000 complaints have been filed by a variety of importers, with filings increasing especially rapidly after the filing by Costco Wholesale Corporation generated considerable press
- The U.S. Government has stated to the CIT that it will not oppose reliquidation of entries that have incurred IEEPA-based tariffs (if they are definitively struck down in a final, unappealable decision), but only for Plaintiffs who have filed Section 1581(i) actions
Option 2: Administrative Protests (CF-19)
- Protests cannot be filed until entries have liquidated. Where CBP acts in a purely ministerial role (arguably, as with IEEPA tariffs), protests may ultimately be rejected
- Less certain pathway than CIT filing
Option 3: Post-Summary Corrections (PSCs)
- For unliquidated entries, PSCs may be an available mechanism to conform entries to the courts’ directives, depending on what the Supreme Court and CIT ultimately order
Limiting IEEPA does not eliminate tariff authority, and trade complexity just got more uncertain.
Expectthe Administration’s increased reliance on:
– Section 301
– Section 232
– Section 201
If you have questions and need assistance, Logistics Plus is here to support you.
