Many healthcare companies, pharmaceutical wholesalers, medical device manufacturers, and other businesses that rely heavily on global supply chains and importation have been affected by tariffs. Now is the time to take action to be reimbursed for the thousands or even millions of dollars in tariffs that may have been unlawfully imposed. The U.S. Supreme Court is preparing to issue a highly anticipated decision in Learning Resources, Inc. v. Trump concerning the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Many importers are asking a critical question: If the Court invalidates these tariffs, can duties already paid be recovered? The answer is yes. However, importers should act immediately to preserve their rights and position themselves for the fastest possible relief.
The IEEPA Tariff Litigation
The legality of IEEPA tariffs is currently pending before the U.S. Supreme Court. Although the timing of the Court’s decision remains uncertain, a ruling invalidating the tariffs could open the door for affected businesses to recover duties already paid. At oral argument, the federal government acknowledged that refunds would be automatic for the named plaintiffs in the case.[1] For most other importers, however, obtaining a refund will require taking action.
It is unclear whether the Court will address how refunds should be handled, as that issue is not before the Court. As a result, any refund mechanism for non-party importers (those not named in the case) would likely depend on existing administrative and judicial processes, underscoring the importance of taking proactive steps now to preserve refund rights.
Refunds May Not Be Automatic
Customs duties are governed by their own set of laws. Once duties are “liquidated” (a term of art meaning that the U.S. Customs and Border Protection (CBP) has issued a final assessment of the amount of duties owed), they are generally considered final unless timely challenged through specific administrative or judicial procedures.[2] In practical terms, this means that:
- There is no indication that refunds will be automatic for most importers, even if the tariffs are declared unlawful.
- Failure to follow proper administrative or judicial procedures within applicable deadlines may permanently bar recovery.
- Timing, documentation, and overall strategy are critical to preserving refund rights.
As a result, businesses that wait until after the Supreme Court issues its decision may find that key deadlines have already passed, limiting or eliminating their ability to recover previously paid duties.
How Businesses Can Position Themselves to Recover Tariffs Paid
Assuming the Supreme Court strikes down the tariffs, importers may have multiple pathways to seek refunds, depending on whether their entries have been liquidated by the CBP.
Potential pathways include:
- Actions in the CIT: For both liquidated and unliquidated entries, importers may bring a civil action against the federal government in the U.S. Court of International Trade (CIT) challenging the legality of the tariffs. Many importers have already pursued this approach to preserve their refund rights pending the Supreme Court’s decision.
- CBP Administrative Protest: For entries that have already been liquidated, importers may pursue administrative relief by filing a protest with CBP challenging the assessment of duties. In some circumstances, importers may also pursue litigation in the CIT in addition to, or instead of, filing a protest.
For liquidated entries, a protest generally must be filed within 180 days of liquidation.[3] Failure to timely file a protest typically renders the assessment final and unreviewable.[4] If a protest is granted, CBP may refund duties collected, with interest.[5] If the protest is denied, the importer may seek judicial review in the CIT.[6]
For claims brought directly in the CIT, the Court has authority to review challenges to the legality of tariffs and, if the duties are found unlawful, to order relief that may include reliquidation and refunds.[7] While many IEEPA-related cases are currently stayed pending the Court’s decision,[8] timely filings may be critical to preserving an importer’s ability to obtain relief once litigation resumes. Many businesses have taken steps to preserve their rights by filing protests and claims in the CIT.[9]
Critical Deadlines, Risks, and the Importance of Advance Planning
Businesses seeking to recover tariffs paid under IEEPA must navigate several procedural requirements and timing risks that can significantly impact refund eligibility, including whether relief is pursued through an administrative protest or litigation in the CIT. Key considerations include:
- Identifying and closely monitoring the liquidation status of relevant entries.
- Identifying all entries subject to IEEPA tariffs and the duties paid to date.
- Complying with strict filing deadlines, including the 180-day deadline to file administrative protests following liquidation and applicable statutes of limitation for CIT actions.
- Maintaining adequate documentation supporting entry records and duty payments.
Although the precise refund framework will not be known until the Supreme Court issues its decision, failure to take timely and appropriate action can permanently foreclose recovery, regardless of the merits of an importer’s underlying claim. Accordingly, proactive planning is critical to preserving refund rights and positioning businesses to act quickly once legal pathways become available.
How Frier Levitt Can Help
For many healthcare and life sciences companies, tariff refunds may represent substantial capital that can be reinvested into patient care, research, innovation, and growth. If your organization has paid IEEPA tariffs, now is the time to assess your exposure and available options.
Frier Levitt is actively monitoring developments and advising clients on how to position themselves to preserve refund rights and respond quickly as the legal landscape evolves. Our attorneys assist clients with evaluating potential IEEPA tariff claims, monitoring liquidation status, filing protests with the CBP, and coordinating litigation in the CIT.
Contact us today for more information about IEEPA tariffs, refund strategies, or related regulatory considerations.
[1] Learning Resources, Inc., et al., v. Donald J. Trump, President of the United States, et al., No. 24-1287, at 153-155 (Oral Arg. Nov. 5, 2025).
[2] 19 C.F.R. § 159.1 (defining “liquidation”); 19 U.S.C. § 1514(a).
[3] 19 U.S.C. § 1514(c)(3); 19 C.F.R. 174.12(e).
[4] 19 U.S.C. § 1514(a).
[5] 19 C.F.R. § 174.29.
[6] 19 C.F.R. § 174.31.
[7] 28 U.S.C. § 1581(i); 28 U.S.C. § 2631(i); 5 U.S.C. § 702.
[8] Administrative Order 25-02, U.S. Ct. Int’l Trade (Dec. 23, 2025), https://www.cit.uscourts.gov/sites/cit/files/Administrative%20Order%2025-02.pdf.
[9] See, e.g., Costco Wholesale Corp. v. U.S. Customs & Border Prot., No. 1:25-cv-00316 (Ct. Int’l Trade Nov. 28, 2025).
