UPDATE (March 5, 2026): The situation has evolved significantly since this article was published. On March 4, the Court of International Trade ordered CBP to liquidate and reliquidate entries without IEEPA duties. The refund process is now court-directed. Read our latest analysis: CIT Orders IEEPA Tariff Refunds; Appeal Expected.
Supreme Court Strikes Down IEEPA Tariffs: What Importers Must Do Now
On February 20, 2026, the U.S. Supreme Court declared IEEPA-based tariffs unconstitutional in a landmark ruling that invalidates over $133 billion in collected duties. A new 10% Section 122 surcharge takes effect February 24, and importers must act immediately to recover overpayments before critical filing deadlines expire.
What Happened: The Supreme Court Ruling
On February 20, 2026, the U.S. Supreme Court issued one of the most consequential trade decisions in modern history, striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) as unconstitutional. In a decisive ruling, the Court held that IEEPA does not grant the President authority to impose tariffs on imports, finding that the statute's emergency economic powers do not extend to the regulation of international trade through duty assessments.
The Court's reasoning centered on the separation of powers. Article I, Section 8 of the Constitution vests Congress with the exclusive power to "lay and collect Taxes, Duties, Imposts, and Excises" and to "regulate Commerce with foreign Nations." While IEEPA grants broad emergency powers to address unusual and extraordinary threats to national security, the Court determined that these powers cannot be stretched to encompass what is fundamentally a congressional prerogative: setting tariff rates on imported goods.
The practical impact is staggering. Since 2018, the executive branch has used IEEPA authority to impose sweeping tariffs on imports from China, Canada, Mexico, and virtually every other trading partner. Importers have collectively paid over $133.5 billion in IEEPA tariffs during this period. With the constitutional foundation of these tariffs now invalidated, every dollar collected under IEEPA authority is potentially subject to refund.
This ruling does not affect tariffs imposed under other legal authorities. Section 232 tariffs on steel and aluminum, Section 301 tariffs on Chinese goods, and standard Most Favored Nation (MFN) duty rates remain in full effect. Only tariffs that relied on IEEPA as their legal basis are impacted.
"Ending Certain Tariff Actions" Executive Order
Within hours of the Supreme Court's decision, the President signed an executive order titled "Ending Certain Tariff Actions," formally revoking nine IEEPA-based executive orders that had imposed tariffs on imports. This executive order acknowledged the Court's ruling and dismantled the legal framework that supported IEEPA tariffs across multiple trade actions.
The revoked executive orders covered the full range of IEEPA tariff actions, including:
- China IEEPA tariffs — The additional duties imposed on Chinese imports under IEEPA authority, which had reached rates as high as 145% on certain goods
- Canada tariffs — The 25% tariff on most Canadian imports and the 10% tariff on Canadian energy products imposed under IEEPA
- Mexico tariffs — The 25% tariff on Mexican imports imposed under IEEPA emergency declarations
- Global baseline tariffs — The broad-based tariffs applied to imports from virtually all trading partners under IEEPA authority
- Country-specific reciprocal tariffs — Elevated tariff rates targeting specific countries beyond the baseline rate
- Related amendments and modifications — Several follow-on executive orders that adjusted rates, added exemptions, or modified the scope of earlier IEEPA tariff actions
The revocation is effective immediately, meaning that as of February 20, 2026, no IEEPA tariffs are being assessed on new imports entering the United States. However, the revocation alone does not trigger automatic refunds for previously collected duties. Importers must affirmatively file for refunds through the proper CBP channels.
New 10% Section 122 Import Surcharge
Simultaneously with the revocation order, the President signed a second executive order establishing a new 10% ad valorem import surcharge under Section 122 of the Trade Act of 1974. (See our Section 122 surcharge overview for details on rates, exemptions, and what it means for your entries.) This provision, which has rarely been invoked, authorizes the President to impose temporary import surcharges of up to 15% to address large and serious balance-of-payments deficits.
Key Details:
- Rate: 10% ad valorem on the customs value of imported goods
- Effective Date: February 24, 2026
- Duration: 150 days (expires approximately July 24, 2026)
- Legal Authority: Section 122 of the Trade Act of 1974
- Applicability: Broadly applies to most imported goods, with specific exemptions
Exemptions:
The Section 122 surcharge includes several important exemptions that importers should evaluate carefully:
- USMCA-qualifying goods from Canada and Mexico that meet the rules of origin under the United States-Mexico-Canada Agreement
- Products already subject to Section 232 tariffs, including steel and aluminum products, to avoid duty stacking
- Certain agricultural products that are deemed essential for food security
- Pharmaceutical products, including active pharmaceutical ingredients and finished dosage forms
- Aerospace components covered under existing bilateral trade agreements
What Remains Unchanged:
It is critical to understand that the Supreme Court ruling and subsequent executive orders only affect IEEPA-based tariffs. The following remain fully in effect:
- Section 232 tariffs on steel (25%) and aluminum (25%) — These were imposed under a different legal authority and were not challenged in this case
- Section 301 tariffs on Chinese goods — These tariffs, which cover a wide range of Chinese imports, were authorized under a separate statute and remain valid
- Standard MFN duty rates — The baseline tariff rates established by Congress through the Harmonized Tariff Schedule continue to apply
- Antidumping and countervailing duties — All AD/CVD orders remain in effect
The Refund Opportunity
The Supreme Court's ruling opens the door to what may be the largest customs refund event in U.S. history. The numbers are extraordinary:
- $133.5 billion in IEEPA tariffs collected since these duties were first imposed
- Up to $175 billion in potential refunds when including statutory interest that has accrued on overpayments
- Every importer who paid IEEPA tariffs during the period these duties were in effect may be eligible for a refund
The refund process is not automatic. CBP will not proactively issue refund checks to importers. Instead, each importer must file the appropriate paperwork — either a Post Summary Correction (PSC) or a formal protest — to claim their refund. The filing method depends on whether your entries have liquidated.
This is a time-sensitive opportunity. Filing deadlines are absolute and cannot be extended. Once your window closes, the refund is lost permanently, regardless of the amount at stake.
Filing Windows and Deadlines
Understanding your deadlines is the single most important factor in recovering your IEEPA tariff overpayments. The filing method and deadline depend entirely on the liquidation status of each entry.
For Unliquidated Entries (PSC Route):
If your entry has not yet liquidated, you can file a Post Summary Correction to claim your refund. This is the preferred method because it is simpler, faster, and more reliable than a protest.
- File Post Summary Corrections within the 300-day window from the date of entry
- Must file at least 15 days before liquidation to allow CBP processing time
- Entries typically liquidate 314 days after the entry date
- PSCs are filed electronically through the ACE system
For Liquidated Entries (Protest Route):
If your entry has already liquidated, your only option is to file a formal protest under 19 U.S.C. Section 1514.
- File protest within 180 days of the date of liquidation
- This is an absolute statutory bar — there are no exceptions, no extensions, and no appeals if you miss it
- Missing this deadline means a permanent and irrevocable loss of your refund rights for that entry
- Protests are filed with the CBP port director at the port of entry
Calculate Your Deadlines:
For each entry, determine:
- The entry date
- The liquidation date (or estimated liquidation date if not yet liquidated)
- Your filing deadline based on the applicable method
If you are unsure about any of these dates, contact your customs broker or check your ACE account immediately.
PSC Filing vs. Protest Filing: Which Applies to You?
The distinction between these two methods is fundamental, and using the wrong one will result in a rejected filing.
Post Summary Correction (PSC):
A PSC is the amendment of an entry summary that has not yet liquidated. It is the faster, simpler, and preferred method for claiming IEEPA refunds.
- Applies to entries that have not yet liquidated
- Filed electronically through the ACE system
- Must be filed by a licensed customs broker or self-filer with ACE access
- Preserves your maximum refund potential including all applicable interest
- Processing is relatively straightforward once filed correctly
For a detailed walkthrough of the PSC process, read our comprehensive PSC filing guide.
Protest (19 U.S.C. Section 1514):
A protest is a formal legal challenge to a CBP decision, including the assessment of duties on a liquidated entry.
- Applies to entries that have already liquidated
- Must be filed within the strict 180-day window from the liquidation date
- Filed with the CBP port director at the relevant port of entry
- Requires more extensive documentation and legal argumentation
- Represents your last resort for recovering duties on liquidated entries
Step-by-Step Action Plan for Importers
Whether you have ten entries or ten thousand, the process follows the same sequence. Move through these steps as quickly as possible — deadlines are already passing for some importers.
Identify Your IEEPA Entries — Review all import entries dating back to 2018 and isolate those where IEEPA tariffs were assessed. Your customs broker should be able to pull this data, or you can review your ACE records directly.
Check Liquidation Status — For each IEEPA entry, determine whether it has liquidated. Unliquidated entries go through the PSC process; liquidated entries require a protest. Prioritize entries closest to their liquidation date.
Verify ACH Enrollment — As of February 6, 2026, CBP requires ACH enrollment for all refund disbursements. If you are not enrolled, you cannot receive your refund. Read our ACH enrollment guide for step-by-step instructions.
Engage a Licensed Customs Broker — PSCs must be filed through ACE by a licensed customs broker or self-filer. If you do not have ACE filing capability, you need a broker. Engage one now before capacity fills up.
File PSCs for Unliquidated Entries — This is your highest priority. Every day that passes, more entries liquidate and move from the simpler PSC process to the more complex protest process.
File Protests for Recently Liquidated Entries — For any entries that have liquidated within the past 180 days, file formal protests immediately. These deadlines are absolute.
Monitor Refund Processing — After filing, track CBP's processing of your claims. Refunds for valid claims are expected to be processed within 90 to 120 days, though the unprecedented volume may cause delays.
ACH Enrollment: Required for Refunds
This is a detail that many importers overlook, but it can completely block your refund. Starting February 6, 2026, CBP issues all refunds electronically via Automated Clearing House (ACH) direct deposit. Paper checks are no longer issued.
If you have not enrolled your bank account with CBP for ACH refunds, you will not receive your money — even if your PSC or protest is approved. Do not let an administrative oversight cost you potentially millions of dollars.
Read our complete guide on CBP Electronic Refunds for detailed enrollment instructions and troubleshooting.
Recovering your IEEPA duties through CAPE
If you paid IEEPA duties and want to start the refund process now, Strix can file your CAPE declaration even if another broker filed your original entries. Flat fee, free eligibility review, refund deposited directly to your ACE Importer account.
How Strix Can Help
Strix is a licensed customs brokerage with ACE-certified direct filing capabilities. We have been filing customs entries since 2006, and our team is ready to help importers navigate the evolving IEEPA refund situation.
As the refund process is now being directed by the Court of International Trade, importers should work closely with their customs broker to ensure they are positioned to receive refunds as the process unfolds. Strix can assist with monitoring developments, verifying ACH enrollment, and providing general brokerage services to help you navigate the changing trade landscape.
For the latest developments, read our article on the CIT's March 4 order directing IEEPA refunds.
This article was originally published on February 21, 2026 and has been updated to reflect subsequent court developments.