Client Alert: Court Invalidates Broad Tariffs—Refunds with Interest Likely
May 29, 2025
UPDATE: A federal appeals court has temporarily paused the recent ruling that invalidated tariffs imposed during the Trump administration. This stay gives the court time to review the government’s appeal of the lower court’s decision.
ORIGINAL: If your business is involved in international trade, sources any materials or goods from overseas, or if your business is indirectly involved in trade, you may be entitled to a refund on tariffs paid/passed along.
On May 28, 2025, the U.S. Court of International Trade ruled that the Trump administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA) by imposing sweeping tariffs on imports from numerous countries. This decision vacates those tariffs and, if upheld on appeal, could entitle affected businesses to refunds of previously paid duties, along with interest. Affected businesses are encouraged to proactively file for refunds.
Separately, U.S. Customs and Border Protection (CBP) has begun processing refunds for overpaid duties resulting from "stacking"—the improper application of multiple overlapping tariffs on the same goods. Importers who paid cumulative tariffs under certain authorities, such as Section 232 and IEEPA, may be eligible for refunds. To claim these refunds, importers must review their entries and file the appropriate documentation with U.S. Customs and Border Protection.
Here is a quick checklist to prepare for filing for a refund:
- Assess your import records for the countries and dates of imports
- Identify potential refund opportunities based on both the recent court ruling and CBP's guidance on overlapping tariffs
- Watch this space for more updates on the court ruling and the CBP
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Any questions – call Josh Claybourn (O: 812.463.5277)