Today, the U.S. Supreme Court struck down the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), holding that IEEPA does not authorize the President to impose tariffs (Learning Resources, Inc., et al. v. Trump, President of the United States, et al., 607 U.S. ___ (2026)). This landmark decision carries significant financial implications for drug and durable medical equipment (DME) manufacturers, wholesalers, suppliers, and other entities that import pharmaceutical and other medical products. For these businesses, the ruling presents a critical opportunity: the recovery of tariffs paid to date. However, as discussed in Frier Levitt’s recent article, refunds are not automatic and will require immediate action to preserve and secure repayment.
Notably, the Court did not address how the federal government should return the duties already collected from importers. As a result, while the legal basis for the tariffs has been eliminated, the refund process itself remains governed by existing customs laws and procedures.
Refunds Are Not Automatic and Require Action
Once duties are “liquidated” by U.S. Customs and Border Protection (CBP), they are generally considered final unless timely challenged through established administrative or judicial procedures. For importers, this means:
- Refunds may not be automatic and may require the taking of affirmative action.
- Strict deadlines may apply, including the 180-day deadline to file a protest with the CBP following liquidation.
- Judicial relief through the U.S. Court of International Trade (CIT) may be required for unliquidated entries.
- Failure to act promptly could permanently bar recovery, notwithstanding the Supreme Court’s ruling.
Because the Court did not establish a refund framework, recovery will depend on navigating existing CBP and CIT procedures efficiently and strategically, unless the federal government implements a separate refund mechanism. The government has not been mandated to do this by the Court and has little motivation to do so.
How Frier Levitt Can Help
Healthcare and life sciences companies that import pharmaceutical products may be positioned to recover substantial sums. Strategic coordination and prompt action are essential to preserving refund rights and maximizing recovery. Frier Levitt advises drug manufacturers, pharmaceutical wholesalers, DME suppliers, and other importers of pharmaceutical products on:
- Tariff exposure assessment.
- Strategic refund planning.
- Entry review and liquidation analysis.
- Preparation and filing of CBP protests for liquidated entries.
- Litigation before the CIT.
If your organization has paid IEEPA tariffs, now is the time to evaluate your recovery options. Contact Frier Levitt today to discuss your potential refund strategy.
