International Companies Have Options Following U.S. Supreme Court IEEPA Tariff Ruling

Moore & Van Allen (MVA) Head of International Capital Markets John I. Sanders, White Collar, Regulatory Defense & Investigations Member Frank Schall and Financial Services Associate Maria Romero Perdomo co-authored the article, "International Companies Have Options Following U.S. Supreme Court IEEPA Tariff Ruling."

The article

Earlier this year, U.S. President Donald Trump levied wide-ranging tariffs in reliance on the International Emergency Economic Powers Act (IEEPA) and the U.S. Customs and Border Patrol[MR1] (CBP) began collecting those tariffs from companies importing certain goods into the U.S. from certain foreign jurisdictions. On February 20, 2026, the U.S. Supreme Court held that the President did not have the authority to levy tariffs under IEEPA.

International companies that have already paid the tariffs as an importer of record now face complex questions. Among the most immediate are (i) how to pursue a refund of an improperly levied IEEPA tariff and (ii) how to identify and manage the risk of potential claims by customers and counterparties who may seek repayment of any pass-through costs related to IEEPA tariffs.

Three Potential Refund Avenues

International companies that are importers of record and have paid IEEPA tariffs can seek refunds via one of three avenues, depending on the status of the tariff:

• Unliquidated Entries: Importers of record that paid an initial estimated tariff bill but have not yet received a definitive tariff liability amount, or "final liquidation order," from CBP can seek a refund by filing a post-summary correction through CBP's Automated Broker Interface, revising the information in the entry to reflect that the IEEPA tariffs were not authorized.

• Liquidated Entries: Importers of record that have already been subject to a final liquidation order can seek a refund by submitting a protest to CBP within 180 days of liquidation, declaring that the IEEPA tariffs were an error. If, on the other hand, more than 180 days have passed from the time of the final liquidation order, an importer of record may file a complaint with the Court of International Trade (CIT) to seek to recover IEEPA tariffs that have been paid.

Potential Legal Liability Related to Tariff Refunds

Whether or not companies are eligible to receive tariff refunds via the avenues described above, companies should expect claims and potential litigation from customers and other counterparties seeking repayment of any pass-through costs related to IEEPA tariffs. If tariff costs were passed on via contractual provisions, companies should review those provisions immediately to determine potential liability. Depending on the language of the relevant contract, (i) companies that do not apply for a refund to which they may be entitled may face claims from counterparties and customers who would be entitled to all or a portion of any refunded amount and (ii) companies that apply for and obtain a refund may face claims for all or a portion of the refunded amount. Any importer of record that paid improperly levied IEEPA tariffs should assess their potential obligations to customers and other counterparties when deciding whether to pursue a refund under the avenues set forth above.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.