IEEPA Tariff Litigation Update: What Importers Need to Know

The U.S. Supreme Court will hear two major cases on November 5, 2025 that challenge the legality of tariffs of up to 125% imposed under the International Emergency Economic Powers Act (IEEPA). The outcome is uncertain: the Court could uphold the tariffs, strike them down, or send the cases back to lower courts for further review, which could tie up the ultimate decisions for months or years.

For importers, the critical issue is timing. Refund requests for duties paid must be filed before customs entries “liquidate,” which typically happens 314 days after filing. Waiting for the Supreme Court’s decision could mean missing these deadlines and losing the chance to recover duties if the tariffs are eventually ruled unlawful.

Background: The IEEPA Tariffs

In 2025, President Trump imposed tariffs of up to 125% on imported goods under the International Emergency Economic Powers Act of 1977 (IEEPA). These tariffs were tied to national emergencies declared for:

• Fentanyl imports from China, Canada, and Mexico
• Trade deficits affecting U.S. manufacturing capacity (reciprocal tariffs)
• Secondary actions later extended to goods from India and Brazil

Importers and 12 U.S. states filed lawsuits arguing that IEEPA does not give the President authority to levy tariffs.

Legal Uncertainty and Jurisdiction

Two key cases — Trump v. V.O.S. Selections and Learning Resources v. Trump — will be heard by the Supreme Court in November.

Lower Court Decisions

• CIT (May 2025): Found reciprocal tariffs unconstitutional and fentanyl tariffs unrelated to the declared emergency
• CAFC (Aug 2025): Upheld the CIT decision, but did not address all underlying issues
• DDC: Determined IEEPA is not a law providing for tariffs, the tariffs are ultra vires

Historical Context

• 1971: Nixon used the Trading with the Enemy Act (TWEA) to impose a temporary 10% tariff
• 1974: Yoshida Int’l v. U.S. upheld Nixon’s tariffs as reasonable
• 1977: Congress removed tariff authority from TWEA and created IEEPA

Possible Supreme Court Outcomes

1. Tariffs Upheld: Importers continue paying duties; cases may be remanded for further review
2. Tariffs Struck Down: CBP stops collecting IEEPA duties and refunds eligible tariffs
3. Partial Ruling: Some tariff portions struck down while others upheld
4. Jurisdiction-Only Ruling: Cases dismissed on jurisdictional grounds, prolonging uncertainty

What Importers Should Do Now

1. Request an Extension of Entry Liquidation — Up to 12 months under 19 C.F.R. §159.12
2. File Protests with CBP — Within 180 days of liquidation under 19 C.F.R. Part §174
3. Consider Further Legal Action — Consult trade counsel about initiating lawsuits