The U.S. Supreme Court recently struck down certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the law did not authorize those global tariffs. For businesses that paid them, this could mean potential refunds.

Beginning in early 2025, tariffs were imposed on imports from Canada, Mexico, and China, often referred to as the “fentanyl tariffs,” along with broader global “reciprocal” tariffs. These included a baseline global rate and additional country-specific increases. Because IEEPA had never before been used to impose tariffs, the Court ruled that the President did not have authority under that statute to do so.

It is important to understand that this ruling does not eliminate all tariffs. Within hours of the decision, new global tariffs were announced under different trade laws, with rates later increased to 15 percent. Those laws require formal investigations and have specific limits, but tariffs remain part of the current trade environment.

Who Should Pay Attention?

This may affect businesses that:

• Source products or materials from overseas
• Manufacture using foreign components
• Purchase goods from international suppliers
• Operate within global supply chains

Even businesses that do not consider themselves “importers” may have paid these tariffs through customs filings.

What Does This Mean for Refunds?

Businesses that paid tariffs specifically under IEEPA may be eligible for refunds. Not all tariffs are affected. Section 301 tariffs, Section 232 tariffs (such as steel and aluminum), and anti-dumping or countervailing duties remain in effect and are not eligible.

Refunds will likely not be automatic. The entity that directly paid the tariff, known as the importer of record, is generally the party eligible to file a claim. There is typically a two-year window from the date of payment to preserve refund rights, and the process may involve administrative filings or court action.

If your business sources goods internationally, consider reviewing your 2025 tariff payments with your accountant or customs broker. Understanding your position now can help you avoid missing important deadlines and protect your bottom line.

Now is the time to check your 2025 imports. It could make a meaningful difference to your bottom line.

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_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}