Tariff turmoil: Refunds, lawsuits and new duties ahead

“The court held that the word ‘regulate’ in IEEPA does not include the authority to impose tariffs,” Toma said. “Taxing imports is a distinct constitutional power that requires express delegation from Congress.”

The decision invalidated tariffs that had been imposed on imports from China, Canada, Mexico and dozens of other countries, affecting hundreds of billions of dollars in trade and setting off a complex process for companies seeking refunds on duties already paid.

The ruling was based in part on the court’s finding that IEEPA allows the president to regulate imports during a national emergency but does not explicitly authorize tariffs, which are considered a tax that requires clear congressional approval, according to the attorneys.

“The bottom line here is the executive orders imposing IEEPA tariffs are invalid and duties collected under those orders were assessed without legal authority,” Toma said.

Related: Small businesses say tariffs still hurting a year after ‘Liberation Day’

Refund process could take years

A major focus of the webinar was the ongoing litigation in the U.S. Court of International Trade and the process for issuing refunds on previously collected tariffs.

“In terms of precedent for refunds of this scale… we’re looking at about $166 billion,” Rhoades said.

The refund claims tied to the invalidated tariffs could far exceed previous large-scale refund cases such as the harbor maintenance tax case, which involved about $2.8 billion in refunds and took years to resolve.

Customs and Border Protection is developing a new system to process refunds electronically, with a proposed process that would allow importers to submit claims through a portal, followed by automated validation and payment through the Treasury Department.

“Finalizing entries without tariffs is unprecedented in scale,” Rhoades said. “If it were to be done manually, it would require a review of over 70 million entries.”

The agency has indicated that implementing the system and reviewing tens of millions of entries will be a complex process, though early timelines suggested refunds could begin later this year.

Key deadline: liquidation status

One of the most important issues for importers is whether their entries have been liquidated, recently liquidated or finally liquidated, because that determines whether they are eligible for automatic refunds or must file protests or lawsuits to preserve their rights.

Importers generally have 180 days after liquidation to file a protest, attorneys said, making it critical for companies to track their entries and deadlines to avoid losing refund eligibility.

“The standard protest deadline is 180 days after liquidation… so just keep an eye on that so you don’t find yourself in a position where you have forfeited claims,” Zimolzak said.

Another key legal question still being debated is whether refunds will be limited to companies that filed lawsuits in the Court of International Trade or extended more broadly to importers with eligible entries.

“There’s kind of a divergence of views now in the position of the government and of the Court of International Trade, where the government has taken the position that refunds should be limited to companies that file claims in the Court of International Trade,” Zimolzak said.

Tariffs aren’t going away

Despite the Supreme Court decision, attorneys said companies should expect tariffs to remain a major part of U.S. trade policy, but imposed under more traditional legal authorities such as Section 232, Section 301 and Section 201, which require formal investigations and administrative processes.

The Trump administration has already imposed a temporary global import surcharge under Section 122 of the Trade Act, and additional tariff actions tied to national security, industrial policy and trade enforcement are likely.

The shift means companies may have more time to prepare for new tariffs but should still expect continued trade policy volatility.

What companies should do now

Attorneys recommended companies take several immediate steps, including:

• Tracking liquidation status of entries
• Preserving refund rights through protests or litigation if necessary
• Reviewing contracts for duty-sharing provisions
• Evaluating supply chain exposure to future tariffs
• Preparing internal response plans for new tariff actions

While the Supreme Court decision eliminated one category of tariffs, the broader trade environment remains uncertain, and companies should prepare for continued tariff policy changes in the years ahead.

Related: Court ruling on tariffs sets off refund scramble, legal uncertainty