Supreme Court Kills IEEPA Tariffs - Importers Cheer, Consumers ... Not So Much - Above the Law

"Crucially, any refund goes to the importer of record - not the final consumer downstream. Take a simple case: You import a widget directly from overseas, pay the IEEPA tariff to clear customs, and get it released. As the importer of record, you can pursue a refund via PSC."

"CBP has up to 314 days to revisit and adjust the tariff amount if the importer got the HTS codes wrong. After that window closes without action, the entry is "deemed liquidated" - the calculation is final. Liquidation status matters because it dictates how importers can challenge the tariffs and seek refunds."

"For unliquidated entries, they can file a Post-Summary Correction (PSC) with CBP. If the PSC is accepted, a refund will be issued. For liquidated entries, the importer must file a formal protest within 180 days of liquidation. If denied, they get another 180 days to sue in the U.S. Court of International Trade."

The Supreme Court's February 2026 decision striking down IEEPA tariffs as unconstitutional has triggered numerous refund lawsuits from companies. However, the structure of U.S. tariff collection means refunds will likely not reach consumers. Importers must file entries with U.S. Customs and Border Protection, paying tariffs before goods enter commerce. CBP has 314 days to adjust tariff amounts; after that, entries become "deemed liquidated" and final. Refunds are issued only to the importer of record through Post-Summary Corrections for unliquidated entries or formal protests for liquidated entries. Since importers, not consumers, are the legal recipients of refunds, companies may retain the windfall rather than pass savings to customers.

Read at Above the Law