Barnes & Thornburg | Supreme Court Strikes Down IEEPA Tariffs: Key Takeaways for Importers and What Comes Next

What Does This Mean for Refunds on Past Import Entries?

Because the Supreme Court was silent on this issue, the road to refunds on past entries remains unclear. In a press conference today, President Donald Trump indicated that the federal government will litigate the IEEPA tariff refund issue. In prior filings with the courts, however, the government took the position that it will issue refunds if the Supreme Court finds the IEEPA tariffs unlawful.

The U.S. Court of International Trade (CIT) will likely decide how to implement the Supreme Court’s decision. We believe that the CIT will establish or direct U.S. Customs and Border Protection (CBP) to establish a refund procedure. At this time, it is unclear what that process would look like, when it would take effect, or how long it would take.

For now, importers should continue to closely track the liquidation status of all entries for which they paid IEEPA tariffs. Knowing whether each entry is still unliquidated or already liquidated is critical. Importers should take into account whether any protest deadlines are imminent and should seek further advice. In addition to monitoring liquidation status, importers should begin gathering the entry records including:

• Pulling all import data from ACE (Automated Commercial Environment), the online CBP system that stores entry information and duty payment records, for every entry that paid IEEPA duties.
• Gathering complete entry packets for all affected entries and proof of duty payments.

What Does This Mean for New Import Entries Today?

We expect CBP to issue implementing instructions to stop collecting IEEPA tariff actions. But, as of the time of this email, CBP has not yet issued instructions on how it will implement the decision. Once CBP issues such instructions, importers will no longer be required to pay IEEPA tariffs. However, other applicable tariffs will still need to be paid.

Importers with pending shipments may want to consider delaying shipment or entering imported goods into a bonded warehouse until CBP has issued instructions.

New 10% Section 122 Global Tariffs and Other Tariff Actions

Also at today’s press conference, President Trump announced a 10% global tariff under Section 122 of the Trade Act of 1974. This authority grants the president the power to impose a “temporary import surcharge” to “deal with large and serious United States balance-of-payment deficits.” Such tariffs can only be imposed for up to 150 days, unless Congress affirmatively votes to continue the tariffs beyond 150 days. Section 122 does not allow tariffs to exceed 15%. No president has previously imposed tariffs under Section 122.

President Trump also announced new Section 301 (unfair trade practices) investigations but did not say which countries would be subject to the new investigations. Other tariff authorities like Section 301, Section 232 (national security), and Section 201 (safeguards) require agency investigations, public comment periods, and agency reports to the president. These processes are not immediate.

What Impact Does the Ruling Have on Recently Negotiated Trade Framework Deals?

In the past year, the administration has negotiated various trade framework deals with certain countries (e.g., the European Union, the United Kingdom and Japan) that relied in part on the IEEPA authority. The Supreme Court’s decision generates uncertainty regarding those trade deals and the agreed-upon tariff rates.