IEEPA Tariffs Struck Down: What Importers Need to Know About Refunds

IEEPA Tariffs Are Gone. The Questions Remain.

As you have no doubt heard, the U.S. Supreme Court ruled on February 20, 2026, that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. CBP has ceased collection of all IEEPA tariffs as of February 24.

This is a significant development — but it does not mean tariffs have disappeared. And for importers who paid IEEPA duties over the past year, the path to recovering those costs is far more complicated than it may appear. Here’s what you need to know.

Section 122 Has Replaced IEEPA

Within hours of the Supreme Court’s decision, the President invoked Section 122 of the Trade Act of 1974. This imposed a temporary import surcharge effective February 24. Per CBP CSMS #67844987, the surcharge is an additional 10% ad valorem duty on imported articles from all countries, in effect for 150 days through July 24, 2026, unless extended by Congress. This is in addition to the ‘regular’ duty rate that would otherwise apply to the commodity. An increase to 15% has been announced,but it has not been made official.

Section 232 (which applies mainly to steel and aluminum) and Section 301 (which applies to goods from China) tariffs remain fully in effect and are not impacted by the Supreme Court’s decision.

Refunds Will Not Be Simple

The Supreme Court’s ruling struck down the legal authority behind IEEPA tariffs, but the Court did not address refunds. It did not order the government to return what was collected, and it did not establish a process for doing so.

That process will be determined by the U.S. Court of International Trade, which the Supreme Court confirmed has exclusive jurisdiction over IEEPA tariff cases. Already, FedEx has filed suit against CBP at the Court of International Trade seeking a full refund of all IEEPA duties paid — becoming one of the highest-profile companies to take legal action since Friday’s ruling. Over 1,800 importers had already filed cases at the CIT before the decision came down.

The reality is this: pursuing IEEPA refunds is not as straightforward as filing a protest or a post-entry amendment. The refund process has not been defined, the legal landscape is still developing, and the financial and procedural complexity of these claims requires a level of legal expertise that goes beyond what a customs broker — even the most experienced one — should provide.

Our Customs Broker’s Recommendation: Talk to a Trade Attorney

We are being direct with you because that’s what a good partner does. Customs brokers do not have attorney-client privilege. The strategic decisions involved in pursuing IEEPA refunds — including timing, venue, and claim structure — require qualified legal counsel.

If you paid IEEPA tariffs and want to explore your options for recovery, we strongly recommend speaking with a customs and trade attorney who can evaluate your specific situation and advise you on the best path forward.

As always, American Cargoservice is committed to providing valuable updates to our customers. We will continue to monitor the situation, and send out updates as they become available.

Questions about how these changes affect your shipments?
Contact ACS at info@acssan.com or (858) 565-4125.