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

TL;DR

• Litigation creates uncertainty about timing and outcome, not about your obligation to comply today.
• Entries still have to be made correctly while a case proceeds.
• Track the official record rather than commentary, and keep your own entry evidence intact.

How to manage an unresolved tariff position

Action	Why
Keep declaring correctly	Obligations apply while a challenge proceeds
Preserve entry records	You may need them if the position changes or a refund route opens
Track the official record	Follow the primary docket or agency publication, not commentary
Ask about exposure	Confirm with your broker which entries could be affected and how

Comply now, track later: a pending case does not suspend entry obligations. Continue to declare correctly and preserve your entry records in case the position changes.

Frequently asked questions

Do I still have to pay duties while a tariff case is pending?

Yes. A pending challenge does not suspend entry obligations. Continue to declare correctly and keep your records.

Could I get a refund if a challenge succeeds?

It depends on the outcome and on whether an applicable refund route exists. Preserve entry evidence so you can act if the position changes.

Where should I follow the status of a tariff case?

Follow the official docket or agency publication. Secondary commentary is not a reliable basis for an entry decision.