Update, February 20, 2026: the Supreme Court has ruled that IEEPA does not authorize the President to impose tariffs. Our client alert on the decision covers the ruling. The refund strategies below remain the ones that matter.
In the next few months, the United States Supreme Court will decide in Learning Resources, Inc. v. Trump whether the President had the authority to impose the global tariffs under the International Emergency Economic Powers Act (IEEPA). Businesses that paid those tariffs may be entitled to refunds, and the steps taken before the decision will shape how quickly, and whether, those refunds arrive.
The key points:
- Businesses that paid IEEPA tariffs may be entitled to a refund, depending on the Supreme Court's decision in Learning Resources, Inc. v. Trump.
- The decision is expected in the first quarter of 2026. Businesses that paid the tariffs should take proactive steps now to protect their potential refunds.
- Importers are already filing preemptive refund lawsuits in the Court of International Trade to secure timely and accurate payment of any refund.
- Businesses with entries liquidating in the immediate future, before the Court rules, need special attention.
This article covers three topics: the case itself, the refund strategies emerging while it is pending, and how refunds could work depending on the liquidation status of your entries.
Learning Resources, Inc. v. Trump
On November 5, the Supreme Court heard oral argument in Learning Resources, a case that squarely presents whether the President may impose any tariff on imports, in any amount, under IEEPA. The Court's ruling will bring a host of unknown economic consequences and potentially substantial changes to the administration's foreign policy.
Based on the tone of the argument, most Court observers recognize the likelihood that the IEEPA tariffs will be struck down as a violation of Congress's exclusive constitutional taxing authority. The timing remains uncertain, but the Court's recent term data suggests a decision could come in the first quarter of 2026.
If the Court invalidates the tariffs, affected businesses should be entitled to a refund. The next question is how they will obtain one. An automatic and immediate refund is highly unlikely; there is no assurance that U.S. Customs and Border Protection (CBP) will pay without being asked. The realistic expectation is that businesses will need to take affirmative steps to protect their refund and pursue recovery. Justice Barrett speculated during argument that paying importers what they are owed could be, in her words, a mess.
Emerging refund strategies to protect remedies
As the decision nears, companies are filing preemptive actions and protective refund claims to preserve their rights and position themselves for orderly and timely relief. The complaints are filed in the Court of International Trade (CIT) and seek to suspend liquidation, or otherwise get ahead of the refund process, in case the Court strikes the tariffs but leaves the refund mechanics to the lower courts or to CBP. Many seek preliminary injunctions preventing final liquidation, which preserves one refund pathway.
If the Court strikes down the tariffs but leaves remedies to the lower courts or CBP, being a plaintiff with a live CIT case may accelerate refund processing and help ensure payment. For businesses with significant tariffs paid, upcoming liquidations, or denied CBP requests, a tailored litigation posture at the CIT may be warranted to protect rights and avoid losing remedies.
How refunds could work depending on liquidation status
Tariff refunds generally turn on the liquidation status of the entries. Liquidation is CBP's final calculation and closure of an entry. Given the Court's skeptical posture and the scale of potential refunds, businesses should not assume refunds will issue automatically. The prudent approach is to map entries by liquidation status, identify near-term liquidation dates, and promptly pursue one or more of the procedural avenues below, with special attention to entries that have not yet liquidated.
Before liquidation: seek to extend or suspend it
If entries have not yet liquidated, you can request extensions of liquidation from CBP so that final liquidation falls after the Supreme Court's ruling. The goal is to keep entries open so that, if the tariffs are invalidated, refunds can be processed without post-liquidation protests. That streamlines recovery and shortens the administrative process.
After liquidation: file a timely protest within 180 days
If entries liquidate, businesses generally have 180 days from the liquidation date to file a protest with CBP challenging the assessed duties. Protests are the standard administrative vehicle for seeking refunds and are often a prerequisite to CIT jurisdiction. Businesses can file protests and ask CBP to hold them in abeyance pending the Supreme Court's decision. If a protest is denied, judicial review in the CIT follows, subject to payment and other procedural requirements.
Parallel judicial action at the CIT
For larger tariff amounts, several businesses are suing directly in the CIT to suspend liquidation or to secure a pathway to refunds if the tariffs fall. Exhaustion of administrative remedies is the general rule, but the CIT's residual jurisdiction allows it to hear actions where liquidation deadlines are imminent or the administrative path lacks an adequate remedy. The choice among protests, injunctions to suspend liquidation, and direct litigation is strategic, and it turns on timing, exposure, and risk tolerance.
Conclusion
The Learning Resources decision will reshape executive tariff authority and, if the tariffs are struck down, will require substantial refunds however untidy the process proves to be. If your business has paid IEEPA tariffs, now is the time to prepare a refund claim with CBP or the CIT, depending on your facts. Whiteford's attorneys are positioned to guide you through the refund process in this precedent-setting event. Contact us to discuss your entries, or reach Curtis Paul at 410.347.8732 or Michael March at 410.347.8730 directly.