The Supreme Court recently ruled that many of President Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) were illegal. This opens the door for U.S. importers to seek refunds, potentially totaling as much as $175 billion. However, the ruling does not provide clear instructions on how or when these refunds will be issued, leaving companies navigating a complex process.

Do I have to file something to get my tariff refund or will it happen automatically?
The Supreme Court Building in Washington, D.C., where the Court recently ruled that many tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, potentially paving the way for billions in refunds to U.S. importers.

Why This Matters

Companies that paid these tariffs may face several challenges:

  • The ruling does not automatically guarantee refunds. Lower courts will decide the process for any payments.
  • Importers posted customs bonds and collateral, which may also need to be refunded or verified.
  • President Trump announced a new 10% global tariff and warned that disputes over refunds could take years to resolve.

Justice Brett Kavanaugh, in his dissent, noted that while the decision does not significantly limit presidential tariff authority, the refund process could be complicated, as highlighted during oral arguments.

What Importers Should Know

Experts suggest that:

  • Refunds will likely be processed through the Court of International Trade (CIT), potentially after review by the U.S. Court of Appeals for the Federal Circuit.
  • Companies may need to actively file claims to receive refunds, and failing to do so could result in forfeiting the right to recover funds.
  • Customs bonds and collateral could take weeks or months to release due to verification and insurance procedures.

Even though tariffs and related bonds are itemized, which could simplify calculations, the refund process will still require patience. Many businesses have already begun coordinating with insurers to ensure collateral is returned efficiently once refunds are approved.

Broader Implications

The ruling also has wider economic effects:

  • Tariff collections surged to $30 billion in January, totaling $124 billion year-to-date—a 304% increase from the same period in 2025.
  • Additional court proceedings may arise, potentially sending some disputes back toward the Supreme Court.
  • Lawmakers, including Senator Maria Cantwell (D-Wash.), are urging the Treasury to implement a transparent and timely refund process, noting that some businesses have faced significant financial strain due to the illegal tariffs.

In Your Corner

If you have questions about the Supreme Court decision, tariff refunds, or customs bonds and collateral, please reach out to your LGA advisor. As guidance continues to develop, we will keep you informed of relevant updates and considerations.