The Supreme Court will be hearing arguments for and against President Trump’s reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA). While the Court of International Trade (CIT) and the Appeals Court for the Federal Circuit have both issued opinions against these tariffs, the Supreme Court agreed to an expedited hearing of V.O.S. Selections, Inc. v. Trump on November 5. To listen to the arguments, tune into the Supreme Court website here.
What would happen if the IEEPA tariffs were overturned?
This case could require a refund of the IEEPA tariffs already levied. Regardless of whether a reciprocal tariff or a “trafficking tariff” (related to fentanyl from Canada, China, and Mexico), both are at question. If overturned, importers of record—those legally responsible for the tariffs upon importation—may receive a refund of the tariffs they previously paid. What this does not necessarily mean, however, is that the ultimate consumer would be provided any benefit from this change.
Other tariffs, such as Section 232 tariffs and Section 301 tariffs, are not impacted by this hearing. These are tariffs on specific goods (like steel, aluminum or copper) or on nations conducting what deemed as “unfair trade practices” (primarily China at this time). That being said, the President argues in his petition to the Supreme Court that a requirement to return the levied IEEPA tariffs would be harmful to the economy. More to come about what impacts would materialize if this result does in fact occur.
How long until we know how the Supreme Court will rule?
There is no set timeline for the Supreme Court’s issuance of opinions. It is possible that they will produce a decision quickly given the expedited nature of the case. However, the process remains the same—discussion, writing, circulating, and potentially revising opinions would still apply. For reference, recent examples (from 2024-2025) have ranged from 2 months to around 6 months for a Supreme Court’s opinion following a hearing.
How would tariff refunds work?
Giving this timing is up in the air, importers should consider requesting an extension for their entry liquidations. According to 19 CFR 159.1, “Liquidation means the final computation or ascertainment of duties on entries for consumption or drawback entries”. In short, it’s the process of calculating the final tariff levied. Liquidation needs to occur within one year of the product entering the U.S., but could be extended as long as three years assuming the CBP agrees there is good cause for this extension (19 CFR 159.12(e)). If this strategy fails, it’s possible to file a protest to allow more time for the Supreme Court to issue their opinion. This could provide importers the opportunity to avoid payment of IEEPA tariffs if they are ultimately overturned (rather than paying and requesting a refund). Regardless, it’s always recommended to maintain adequate records—whether it be for invoices, the imports themselves, or payments made to date.
What can I do now about tariffs?
Strategies exist that can help to mitigate the impact of tariffs. Take a look at some of our articles and recorded webinars including: Strategic Planning to Help Mitigate Tariff Impacts, Tariff Mitigation in an Evolving Landscape, and Tariff 101: Quick Q&A Guide. Discussions include overviews of common tariff mitigation strategies like transfer pricing considerations, classification strategies, unbundling service costs, applying the first-sale rule, and more.