Key Takeaways
- The Supreme Court has ruled Trump’s IEEPA tariffs unlawful
- This ruling opens the door for many businesses to get refunded for IEEPA tariffs they paid directly on imports
- In order to be eligible for your money back, your business must have been the Importer of Record
- The CBP is developing a dedicated administrative refund process in its Automated Commercial Environment (ACE) system under the supervision of the U.S. Court of International Trade (CIT).
- Read our breakdown on how small business owners can collect the necessary information and documentation to officially request their refund
It is estimated that the direct annual tariff cost to U.S. small businesses was between $85 billion and $99.6 billion.
From April to September of 2025, roughly 236,000 small business importers in the U.S. paid an average of $151,000 more in tariffs compared to the same period in 2024.
From April to September of 2025, roughly 236,000 small business importers in the U.S. paid an average of $151,000 more in tariffs compared to the same period in 2024.
Supreme Court Tariff Ruling
On Friday February 20, the Supreme Court released a decision condemning the Trump administration’s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
This 1977 Act gives the president authority to broadly manage U.S. economic transactions with other countries after declaring a national emergency.
President Trump evoked the IEEPA to set tariffs on virtually every country the U.S. trades with, citing a U.S. trade deficit and the flow of fentanyl and undocumented immigrants across the southern border as the “national emergencies” justifying his tariffs.
This was the first time in history that a U.S. president attempts to use the IEEPA to enact tariffs.
The Supreme Court majority held that the IEEPA is not an act that gives unchecked authority to the president to unilaterally impose tariffs.
This 1977 Act gives the president authority to broadly manage U.S. economic transactions with other countries after declaring a national emergency.
President Trump evoked the IEEPA to set tariffs on virtually every country the U.S. trades with, citing a U.S. trade deficit and the flow of fentanyl and undocumented immigrants across the southern border as the “national emergencies” justifying his tariffs.
This was the first time in history that a U.S. president attempts to use the IEEPA to enact tariffs.
The Supreme Court majority held that the IEEPA is not an act that gives unchecked authority to the president to unilaterally impose tariffs.
What Changes With This Ruling?
The Supreme Court striking down Trump’s IEEPA tariffs means the termination of:
- The 10% baseline “reciprocal” tariff on nearly every country in the world
- The higher country-specific reciprocal tariffs targeting countries like China, Vietnam, and EU members
- The fentanyl and drug-trafficking emergency tariffs on Mexico, Canada, and China
- Critically, the ruling extends to all IEEPA tariffs categorically — not just specific rates or countries. The Court found the fundamental legal defect was that IEEPA is simply not a tariff statute at all
- Section 301 tariffs on China (authorized under a different trade law)
- Section 232 tariffs on steel and aluminum (authorized under a different national security law)
- Any tariffs properly authorized by Congress through explicit legislation
What Does This Mean For Small Business Owners?
First and foremost, small business owners will no longer need to pay higher prices for imported goods, whether they are the direct importer or purchase imported goods from a wholesaler.
For small business owners who do import goods directly, the Supreme Court’s decision opens the door for those businesses to collect refunds from any tariffs they paid that have now been deemed illegal.
For small business owners who do import goods directly, the Supreme Court’s decision opens the door for those businesses to collect refunds from any tariffs they paid that have now been deemed illegal.
How To Know If You Qualify For Tariff Refunds?
Not all tariffs paid are eligible to be refunded, and not all businesses who distribute imported goods qualify for tariff refunds on those goods.
Here is how you can determine your tariff refund eligibility:
- Confirm that your business was the Importer or Record (IOR) on any imported goods purchased
- Collect the Customs & Border Protection (CBP) Form 7501s, also known as “Entry Summaries,” for each imported shipment from the last year.
- This form can be easily accessed through the Automated Commercial Environment (ACE) Portal.
- If your business is the IOR of that shipment, your business name will be listed near the top of the form.
- If you are not the IOR, you will not be able to claim a refund.
- Call your customs broker if you used one
- Call your customs broker and tell them you are collecting a list of all the entries on which you are listed as the IOR from February 2025 through present day that included IEEPA tariffs.
- If you did not use a customs broker and did not purchase your imported goods through a wholesaler, you are most likely the IOR on the shipments.
- Once you’ve collected confirmation of all your imported shipments from the last year, confirm that the tariffs you paid were tariffs under the IEEPA specifically, as these are the only tariffs that have been ruled unlawful
- On CBP Form 7501, look at the column labeled “HTS Number.”
- IEEPA tariffs will be identified in this column with a code beginning in 9903.01 or 9903.02.
- Note that codes 9903.88 (China 301 tariffs) and 9903.80/9903.85 (steel/aluminum tariffs) are not IEEPA tariffs and are therefore not eligible to be refunded.
How Can Small Business Owners Collect Tariff Refunds?
The road to tariff refunds for small business owners is rocky.
While there are advocacy groups pushing to make the refund process easier, small business owners should not expect an automatic deposit with their money back.
The Court of International Trade (CIT) has given the CBP until mid-April to build out their new refund module, a portal that will allow the estimated 53 million entries, 330,000 importers, and $166 billion worth of duties affected by the IEEPA tariffs to be processed automatically and efficiently.
CBP has described a seven‑step process where importers will file a declaration listing IEEPA entries in ACE, ACE will automatically recalculate duties and interest, and the Department of the Treasury will issue electronic refunds once CBP verifies and certifies them.
While there are advocacy groups pushing to make the refund process easier, small business owners should not expect an automatic deposit with their money back.
The Court of International Trade (CIT) has given the CBP until mid-April to build out their new refund module, a portal that will allow the estimated 53 million entries, 330,000 importers, and $166 billion worth of duties affected by the IEEPA tariffs to be processed automatically and efficiently.
CBP has described a seven‑step process where importers will file a declaration listing IEEPA entries in ACE, ACE will automatically recalculate duties and interest, and the Department of the Treasury will issue electronic refunds once CBP verifies and certifies them.
Does Entry Liquidation Date Matter?
In a typical refund circumstance, a liquidation date over 180 days ago would prevent an importer from easily filing a PSC and receiving their refund.
However, the CBP has made it clear it does not have the capacity to operate under their typical refund process for IEEPA tariff refunds.
Because of that, you should not think of liquidation dates as a hard “on/off” switch for whether you can ever get an IEEPA refund.
The new ACE process is being designed specifically to reach across a huge volume of entries, including many that are already liquidated, and to recalculate duties and interest automatically.
From a practical standpoint, liquidation dates now matter more as an internal data point. They are still important information, but they are no longer the single gatekeeper to refunds.
However, the CBP has made it clear it does not have the capacity to operate under their typical refund process for IEEPA tariff refunds.
Because of that, you should not think of liquidation dates as a hard “on/off” switch for whether you can ever get an IEEPA refund.
The new ACE process is being designed specifically to reach across a huge volume of entries, including many that are already liquidated, and to recalculate duties and interest automatically.
From a practical standpoint, liquidation dates now matter more as an internal data point. They are still important information, but they are no longer the single gatekeeper to refunds.
Overwhelmed? NEWITY Can Help.
As things progress, changes could be made to the process of collecting IEEPA tariff refunds.
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