Lawsuits Filed to Recover Recently Struck-Down Tariffs

Ben Cannon

Author

Watts Law Firm LLP is taking on new lawsuits in the U.S. Court of International Trade on behalf of companies and other major importers, asking the government to refund tariffs that the U.S. Supreme Court has now ruled were unlawfully imposed under the International Emergency Economic Powers Act (“IEEPA”).

A Path for Importers to Recover Unlawful Tariffs

In 2025, the President used a law called the International Emergency Economic Powers Act (“IEEPA”) to justify new tariffs on products coming from many countries, including major trading partners such as Canada, Mexico, China, and dozens of others. These tariffs were added on top of existing duties and, in some cases, more than doubled the amount importers had to pay at the border. For many businesses, that meant higher costs, strained supply chains, and difficult decisions about pricing and sourcing.

A number of companies challenged these tariffs in court soon after they went into effect. Those challenges eventually reached the U.S. Supreme Court. On February 20, 2026, the Court issued a major decision holding that IEEPA does not give the President the power to impose tariffs at all. The Court explained that under the Constitution, only Congress can grant tariff or tax authority, and it found no clear permission in IEEPA for the broad tariff program that had been created.

After the ruling, U.S. Customs and Border Protection (“CBP”) announced that it would stop collecting these IEEPA-based tariffs for imports arriving on or after February 24, 2026. But that change did not automatically return the money companies had already paid while the tariffs were in place. Many importers had been charged the extra duties for months on thousands of shipments, and the process for getting that money back remains unclear.

Turning the Supreme Court’s Landmark Ruling Into Real Refunds

The lawsuits filed aim to help importers recover those payments. The cases ask the Court of International Trade to order CBP to go back and correct affected entries, remove the unlawful IEEPA charges, and refund the extra duties with interest. The suits also rely on prior rulings in earlier IEEPA cases, where judges confirmed that this court has the power to order refunds when tariffs are found to be illegal.

These new actions are part of a much larger wave of litigation across the country. News reports indicate that thousands of refund cases may ultimately be filed, potentially involving tens of billions of dollars in disputed tariffs. At the same time, CBP has begun discussing a possible administrative process within its electronic systems that could allow some importers to request refunds without going through a full lawsuit, but that system is still being developed.

Watts Law Firm LLP is actively representing importers in this evolving landscape and closely monitoring all court cases and any guidance issued by CBP. Because each company’s situation is different, businesses that believe they paid tariffs under the IEEPA program should speak with legal counsel about their specific facts, deadlines, and potential options for seeking refunds.

Disclaimer: This article provides general information about recent tariff litigation based on publicly-filed Complaints and should not be taken as legal advice. Companies and individuals should consult with a qualified attorney before making decisions about whether or how to pursue a tariff refund claim.