If your business paid tariffs under the International Emergency Economic Powers Act (IEEPA), you may be entitled to a refund. Following a February 20, 2026 decision, the U.S. Supreme Court ruled that IEEPA does not authorize a president to impose tariffs — potentially opening the door for reimbursement of duties already paid. While new tariffs have since been implemented under different legal authority, the refund question is now front and center for many small and mid-sized importers.
Here’s what this means for your business.
What Did the Supreme Court Decide?
On February 20, 2026, the Court upheld lower court rulings that tariffs imposed under IEEPA were unlawful. The case moved through the Court of International Trade and the U.S. Court of Appeals for the Federal Circuit before reaching the Supreme Court.
What the ruling did:
- Invalidated certain tariffs imposed on Canada, Mexico, China and other countries under IEEPA
- Confirmed those tariffs were not legally authorized
- Sent the case back to lower courts for further proceedings
What the ruling did not do:
- It did not eliminate all tariffs
- It did not automatically issue refunds
New Tariffs Under a Different Law
Within hours of the Supreme Court ruling, President Donald Trump issued new executive orders imposing tariffs under Section 122 of the Trade Act of 1974. These replaced the IEEPA tariffs but are legally separate.
Key Details of New Tariffs:
- 10% on goods from all countries
- Effective February 24, 2026 – July 24, 2026
- A possible increase to 15% has been discussed but not implemented
Are Refunds Coming?
In principle, yes — but the process is unclear.
Both the Federal Circuit and the Supreme Court acknowledged that if the government lost, companies could seek recovery of IEEPA tariffs paid. However:
- There is currently no finalized refund process.
- More than 1,000 “tag-along” lawsuits have already been filed by companies attempting to preserve refund rights.
- U.S. Customs and Border Protection (CBP) has reportedly rejected certain post-summary corrections tied to IEEPA tariffs.
What Business Owners Should Do Now
If your company imported goods subject to IEEPA tariffs, this directly affects you.
1. Preserve Documentation
Maintain:
- Entry summaries
- Proof of tariff payments
- Internal cost allocation records
- Supplier invoices reflecting tariff surcharges
Documentation will be critical if refunds require formal claims.
2. Evaluate Your Role in the Transaction
If you were:
- The importer of record → You may have standing to pursue refunds directly.
- Not the importer of record → You may need to pursue reimbursement contractually from suppliers.
3. Recognize Risks and Realities
Because billions of dollars may be at stake:
- Legal complexity is likely.
- Refund timelines could stretch into years.
- Litigation may continue.
- Scams may emerge promising fast-track recoveries.
Proceed carefully and rely on verified government guidance.
Bottom Line for Small Businesses
This ruling does not remove tariffs. However, it may allow refunds for IEEPA tariffs your business has already paid for.
If your business was affected:
- Organize your records now – keep invoices, payment receipts, and other documents.
- Check past tariff payments – identify any IEEPA tariffs you’ve paid.
- Stay informed on government updates – regularly monitor Customs and Border Protection and federal guidance for any news on refund procedures.
The process is not finalized yet, and rules may change. However, for businesses that paid IEEPA tariffs, these refunds could provide a meaningful financial recovery once a formal process is announced.