Client Alert: Potential Refunds for President Trump’s IEEPA Tariffs
Date: December 10, 2025
- Businesses that paid tariffs pursuant to the International Emergency Economic Powers Act (IEEPA) that were imposed by President Trump may be entitled to a refund depending on the United States Supreme Court’s decision in Learning Resources, Inc. v. Trump.
- The United States Supreme Court decision should be provided in the first quarter of 2026. Accordingly, businesses that paid the IEEPA tariffs should take immediate proactive steps to protect their potential refunds.
- Businesses that paid IEEPA tariffs are already filing preemptive tariff refund lawsuits in the Court of International Trade (CIT) to facilitate timely and accurate payments of any potential refunds.
- Special consideration should be given to businesses that are currently going through or will go through liquidation events in the immediate future and prior to the Supreme Court’s decision.
In the next few months, the United States Supreme Court will decide whether the President of the United States had the authority to impose the global tariffs under the IEEPA in Learning Resources, Inc. v. Trump. This article discusses three topics in connection with the Supreme Court’s upcoming decision and the tariff refunds that could be paid to U.S. businesses:
- Learning Resources, Inc. v. Trump.
On November 5th, the Supreme Court heard oral argument in Learning Resources, a case that squarely presents whether the President may impose any tariff on imports, in any amount, under IEEPA. The Court’s ruling will bring a host of unknown economic consequences and potentially substantial changes to the administration’s foreign policy. Based on the tone of the oral arguments, most Court observers recognize the likelihood that the IEEPA tariffs will be struck down as a violation of Congress’s exclusive constitutional taxing authority. The timing of the Court’s decision remains uncertain, but the Court’s 2024 term data suggests that a decision could come in the first quarter of 2026.
If the Court invalidates the IEEPA tariffs, all affected businesses should be entitled to a refund. The next logical question is how will the businesses obtain a refund for the monies already paid? An automatic and immediate refund of tariffs paid is highly unlikely as there is no assurance that United States Customs and Border Protection (CBP) will do so. In fact, the more realistic expectation is that refunds will not be automatic and that businesses that paid the tariffs will need to take affirmative steps to protect their refund and pursue recovery. Indeed, Justice Barrett speculated that paying importers their rightfully owed monies could be “a mess.” Because proactive steps can and should be taken now, businesses should already be planning around the status of any IEEPA tariffs paid, and how they could obtain a refund before the Learning Resources decision is announced.
If the Court invalidates the IEEPA tariffs, all affected businesses should be entitled to a refund. The next logical question is how will the businesses obtain a refund for the monies already paid? An automatic and immediate refund of tariffs paid is highly unlikely as there is no assurance that United States Customs and Border Protection (CBP) will do so. In fact, the more realistic expectation is that refunds will not be automatic and that businesses that paid the tariffs will need to take affirmative steps to protect their refund and pursue recovery. Indeed, Justice Barrett speculated that paying importers their rightfully owed monies could be “a mess.” Because proactive steps can and should be taken now, businesses should already be planning around the status of any IEEPA tariffs paid, and how they could obtain a refund before the Learning Resources decision is announced.
- Emerging refund strategies to protect remedies
As the Supreme Court decision nears, companies are filing preemptive actions or protective tariff refund claims to preserve their rights and to position themselves for orderly and timely relief. The complaints are filed in the United States Court of International Trade (CIT) and are seeking to suspend liquidation or otherwise get ahead of the tariff refund process in the event the Supreme Court issues its decision, but remands tariff refund mechanics to lower courts or more likely to the CBP. These lawsuits are seeking preliminary injunctions to prevent final liquidation of the tariffs in order to preserve one tariff refund pathway.
If the Supreme Court strikes down the tariffs but leaves remedies to lower courts or CBP, being a plaintiff with a live case with the CIT may accelerate refund processing and ensure payment. For businesses with significant tariffs paid, upcoming liquidations or denied CBP requests, a tailored litigation posture at the CIT may be warranted to protect rights and avoid loss of remedies.
If the Supreme Court strikes down the tariffs but leaves remedies to lower courts or CBP, being a plaintiff with a live case with the CIT may accelerate refund processing and ensure payment. For businesses with significant tariffs paid, upcoming liquidations or denied CBP requests, a tailored litigation posture at the CIT may be warranted to protect rights and avoid loss of remedies.
- How tariff refunds could work depending on liquidation status
Tariff refunds generally turn on the liquidation status of the tariff entries. Liquidation is CBP’s final calculation and closure of the tariff entry. Given the Court’s skeptical posture and the scale of potential refunds, businesses should not assume that refunds will be issued automatically. The prudent approach is to map entries by liquidation status, identify near-term liquidation dates and promptly pursue one or more of the available procedural avenues to preserve rights – with special consideration given to claims that are prior to liquidation. Three possible avenues to recovery include but are not limited to:
- Claims filed prior to liquidation—immediately seek to extend or suspend liquidation. If entries have not yet liquidated, you can request extensions of liquidation from CBP to push the final liquidation to occur after the Supreme Court’s ruling in late Q1 or early Q2. The goal is to keep entries open so that if the tariffs are invalidated your refunds can be processed without post-liquidation protests. This not only streamlines the recovery but also shortens the time period of the administrative process.
- Claims filed after liquidation—file timely protests in 180 days. If entries liquidate, businesses generally have 180 days from the liquidation date to file a protest with CBP challenging the assessed duties. Protests are the standard administrative vehicle to seek refunds and often a prerequisite to CIT jurisdiction. Businesses can file protests and request that CBP hold them in abeyance pending the Supreme Court’s decision. If protests are denied, businesses may then pursue judicial review in the CIT, subject to payment and other procedural requirements.
- Parallel judicial action at the CIT. For larger tariff amounts, several businesses are already directly suing in the CIT to suspend liquidation or to secure a pathway to refunds if the Supreme Court strikes down the IEEPA tariffs. Although exhaustion of administrative remedies is the general rule, the CIT’s residual jurisdiction allows it to entertain actions where liquidation deadlines are imminent or where the administrative path lacks an adequate remedy. The choice between protests, injunctions to suspend liquidation and direct litigation is strategic and turns on timing, exposure and risk tolerance.
IV. Conclusion
The Learning Resources decision will reshape executive tariff authority, and if struck down, will require substantial tariff refunds regardless of how messy the refund process will be. If you are a business that has paid IEEPA tariffs, now is the time to begin preparations for a potential refund claim with CBP or the CIT depending on your specific facts and circumstances. Attorneys at Whiteford, Taylor & Preston LLP are well positioned to guide you through the tariff refund process in this precedent-setting and globally significant economic event.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.