The recent U.S. Supreme Court ruling striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has sent shockwaves throughout the industry, with trade attorneys warning of a wave of refund litigation and forced companies to rethink their tariff strategies.
Dykema, a Detroit-based national law firm with over 400 attorneys nationwide, recently hosted a webinar titled “2026 Tariff Turbulence: IEEPA Tariffs, Supreme Court Fallout & Refund Strategies,” which brought together experts to discuss the legal fallout from the court’s decision and what importers should do next.
The webinar featured Dykema attorneys Joanne Zimolzak, John Rhoades, and Tina Toma, who explained that the U.S. Supreme Court ruled earlier this year that tariffs imposed under IEEPA were unlawful because the statute does not grant the president authority to impose tariffs, highlighting a critical distinction between regulation and taxation.
The court’s decision also invalidated tariffs that had been imposed on imports from China, Canada, Mexico, and dozens of other countries, affecting hundreds of billions of dollars in trade and setting off a complex process for companies seeking refunds on duties already paid.
As the industry grapples with the implications of this ruling, it's clear that the decision will have significant consequences for companies operating in global markets, particularly those reliant on imports from affected countries.
The refund claims tied to the invalidated tariffs could far exceed previous large-scale refund cases, such as the harbor maintenance tax case, which involved about $2.8 billion in refunds and took years to resolve.
Customs and Border Protection is developing a new system to process refunds electronically, with a proposed process that would allow importers to submit claims through a portal, followed by automated validation and payment through the Treasury Department.
This new system will require significant processing power and resources, particularly given the unprecedented scale of refund claims at play, which could potentially exceed 70 million entries.
As companies navigate this complex landscape, it's essential that they prioritize transparency, communication, and strategic planning to mitigate potential risks and ensure compliance with all applicable regulations.
As companies navigate the complexities of refund litigation and new tariff strategies, it's clear that the US Supreme Court's decision will have far-reaching implications for trade practices.
