Major Development: Supreme Court Decision on IEEPA Tariffs

On February 20, 2026, the U.S. Supreme Court issued its long-awaited decision in Learning Resources, Inc. v. Trump. The Court, in a 6-3 decision, ruled that the International Economic Emergency Powers Act (IEEPA) does not grant the President authority to impose tariffs. As a result, tariffs implemented under IEEPA, including IEEPA China, Canada, Mexico, Brazil, Russian Oil, and most notably, the Reciprocal Tariffs on most countries, have been declared unconstitutional. The ruling does not affect tariffs imposed under other authorities, such as Section 232 steel, aluminum and copper tariffs or the original Section 301 China tariffs.

While the decision creates a potential path to recover IEEPA-based duties already paid, refunds will not be automatic. Unless further guidance is provided by the Customs & Border Protection (CBP) or the courts, importers, who paid those duties, must pursue recovery through the procedural mechanisms that govern all duty corrections and refunds. This is an entry-by-entry recovery process and documentation will be key to an importer’s success.

Key Takeaways

• The Supreme Court Decision applies only to IEEPA tariffs.
• CBP will not issue refunds automatically. The President suggested the battle for refunds will likely be played out in the courts for years to come.
• Recovery depends on the status of each entry (unliquidated, liquidated, or closed).
• The fastest recoveries will come from unliquidated entries.

Refund Pathways by Entry Status

Recommended Next Steps

In light of the Supreme Court’s decision limiting the use of IEEPA tariffs, importers should move promptly to assess potential refund opportunities and preserve their rights. Importers potentially affected by the decision should consider taking the following steps to evaluate available refund options:

1. Assess your entry to identify IEEPA-affected entries.

Importers should conduct a comprehensive review of their import data to identify entries on which IEEPA-based tariffs were assessed. This analysis should rely on actual entry records and should separate entries by liquidation status to determine which recovery mechanisms are available.

2. Begin gathering supporting documentation immediately.

Importers should promptly assemble key records needed to support refund claims, including entry summaries, HTS classifications, and proof of duty payment. Well-organized documentation will be essential to substantiating claims and avoiding delays or denials.

3. Prioritize unliquidated entries for immediate PSC filings.

Unliquidated entries offer the fastest and least complex path to recovery. Importers should identify open entries, confirm upcoming liquidation dates, and file PSCs removing IEEPA duties before liquidation to allow CBP to reliquidate the entries.

4. Prepare protective protests for entries still within the protest window.

For entries that have liquidated but remain within the protest period (generally 180 days from liquidation), importers should consider filing protests to preserve refund rights.

5. Evaluate the business case for CIT litigation for closed entries.

Entries outside the protest period are generally recoverable only through litigation at the CIT. Importers should estimate the potential refund amount, consider timing and costs, and decide whether litigation makes sense as part of a longer-term recovery strategy.

This remains a fluid situation, as it is not yet clear whether CBP will issue rules or guidance addressing refund claims related to IEEPA tariffs, or how quickly any such guidance may be released. Dickinson Wright is actively monitoring developments and will provide updates as they become available.