Throughout 2025, President Trump has declared several national emergencies and invoked the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs of unlimited duration on nearly all goods imported from nearly all of our country’s trading partners. These tariffs have fluctuated in both threatened and actual amounts.
Legal Challenges
Several legal challenges have followed. On May 28, 2025, the U.S. Court of International Trade (CIT) granted summary judgment to five small businesses and 12 states in a consolidated order, holding that the tariffs imposed under Executive Orders Nos. 14193, 14194, 14195, 14257, and 14266 (collectively referred to herein as the “Executive Orders”) exceeded presidential authority under IEEPA and permanently enjoining the Executive Branch from imposing these tariffs. That same week, the U.S. District Court for the District of Columbia granted a preliminary injunction to two small educational toy companies, holding that the IEEPA does not permit the tariffs imposed under the Executive Orders.
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit affirmed, in part, the CIT’s ruling. The Supreme Court has consolidated and agreed to review the U.S. Court of Appeals and U.S. District Court decisions. Oral arguments are scheduled to begin the first week of November 2025.
The stakes are high. If the Supreme Court affirms the decisions of the lower courts, importers may collectively be eligible for billions of dollars in refunds from the U.S. government.
Importer Action Required
If the Supreme Court invalidates the IEEPA tariffs, Customs and Border Protection (CBP) will be required to cease assessment of the subject tariffs and refund unlawfully collected duties, with interest. Importers, however, must take affirmative steps to preserve their rights:
- Post Summary Corrections (PSCs) — For entries not yet liquidated, importers can file PSCs to correct duty rates before liquidation. This mechanism allows CBP to recalculate the applicable duty without the unlawful IEEPA tariff and issue a refund of any overpayment. PSCs are generally the fastest and least contentious way to recover overpayments on unliquidated entries.
- Liquidation — Liquidation is the final computation and official determination of duties owed on an imported shipment by the CBP. Most entries liquidate about 314 days after importation unless extended. Importers can request that CBP extends liquidation on their entries subject to these tariffs. Importers are notified via CBP’s bulletin notice of liquidation, accessible through the ACE portal or at the relevant port.
- Protests — For entries already liquidated, importers must file a protest under 19 U.S.C. § 1514 within 180 days of liquidation. Failure to meet this deadline can bar recovery unless a court specifically orders reliquidation.
- Protective Protests – Many importers are already filing protective protests to ensure refund eligibility while waiting for the Supreme Court’s decision.
- Protective Protests – Many importers are already filing protective protests to ensure refund eligibility while waiting for the Supreme Court’s decision.
- Judicial Relief — If CBP denies or delays refunds, importers can bring actions in the Court of International Trade under 28 U.S.C. § 1581 to compel refunds.
Overall, companies should closely monitor liquidation dates and act promptly to preserve refund rights.
Our team will continue to track these tariff refund developments. Please contact your regular Lathrop GPM attorney with questions about how they may impact your business.