Supreme Court Strikes Down IEEEPA Tariffs, No Ruling on How to Get Refunds
The Supreme Court in a 6-3 decision ruled today that President Trump's imposition of tariffs under the 1977 International Emergency Economic Powers Act (IEEPA) - which constitute about half of the tariffs imposed by the Trump Administration - was not lawful. The Supreme Court did not explain how refunds would be processed.
Usually, importers challenging a tariff must file with U.S. Customs and Border Protection (CBP) an administrative protest of the liquidation of their import entries within 6 months of the entry’s liquidation. But the U.S. Court of International Trade (CIT) held, in AGS Company Automotive Solutions v. United States Customs and Border Protection (Nov. 11, 2025), that it had authority to order reliquidation and refunds if the Supreme Court invalidated the tariffs. The court noted the government (via DOJ filings and arguments) had repeatedly stated it would not oppose such relief for affected entries, creating judicial estoppel against contrary positions later. This reduced urgency for injunctions, as refunds remained available post-liquidation via court order.
The CIT emphasized that IEEPA tariff challenges were "nonprotestable" (not subject to standard CBP protests under 19 U.S.C. § 1514, as CBP acted ministerially under executive orders), making direct CIT suits the primary preservation path. However, based on the overwhelming amount of entries and money involved, we believe it unlikely that importers will be required to file lawsuits in the CIT even if that court is the correct forum for such suits. Pierson Ferdinand has attorneys licensed to practice before the CIT should any clients wish to file suits in that court, although under the AGS decision there is no impending deadline.
While it is possible that duty refunds could be processed automatically, CBP has not made any statements about how refunds will be processed. CBP should issue guidance soon, but meanwhile please contact us if you have any questions.
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Attorneys in Pierson Ferdinand LLP’s International Practice counsel clients how to mitigate the impact of tariffs and help companies stay compliant. We practice before the U.S. Trade Representative (Executive Office of the President), Department of Commerce, U.S. Customs and Border Protection, U.S. International Trade Commission, other federal regulatory agencies. We also litigate trade claims in the US courts involving claims against federal agencies as well as disputes between commercial parties. For additional information, please contact the following PierFerd International Practice attorneys or your regular PierFerd contact for assistance:
Chris Pey, Founding Partner chris.pey@pierferd.com
Philip Gallas, Founding Partner philip.gallas@pierferd.com
Tiffany Comprés, Founding Partner, tiffany.compres@pierferd.com
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