In a landmark victory for U.S. businesses, the Supreme Court has struck down the President’s ability to impose broad emergency tariffs under the International Emergency Economic Powers Act (IEEPA). The Court ruled 6-3 that using this sanctions law to levy taxes on imported goods exceeded executive authority. Affirming that the power to impose tariffs resides solely with Congress. This decision impacts over $150 billion in U.S. tariff collections, which are now subject to potential refunds.
What This Means for Your Business
If your company has paid duties on imported goods under IEEPA, specifically tariffs imposed since February 2025, you may be eligible to demand a refund.
The ruling has sent the case back to the lower courts to determine the exact mechanism for refunds, setting off a scramble by companies to demand recovery.
The Numbers Behind the Ruling
- Total Potential Refunds: ~$150 Billion.
- Daily Collection Estimate: ~$500 Million in IEEPA-based revenue was collected daily.
- Comparison: These potential tariff refunds exceed the combined fiscal 2025 spending of the Department of Transportation and the Department of Justice.
What Happens Next?
While the ruling opens the door to billions in recoveries, the administrative process to secure those funds is complex. Businesses should take the following steps immediately:
- Audit Your Imports: Review all customs assessment data to identify goods imported since February 2025 subject to IEEPA-based duties.
- Monitor Liquidation Status: Track the liquidation status of affected entries, as this dictates the deadline for filing protests or refund claims with U.S. Customs and Border Protection (CBP).
- Review Contracts: Check material contracts for clauses regarding tariff allocation, which may determine who is entitled to the economic benefit of a refund.
Leyton’s Perspective
For businesses optimizing cash flow through Cost Segregation studies or R&D credits, this ruling represents an opportunity to recoup capital.
Curious if your imported goods qualify for a refund? Leyton’s experts can help you audit your customs data to identify potential recovery opportunities.
