I would like to take a moment to discuss what were the tariff changes that took place last year, what changes have occurred since the beginning of this year, and what changes may take place in the near future.
Since the beginning of 2025, the new Trump-led U.S. government added a lot of new tariffs using emergency powers under the International Emergency Economic Powers Act (IEEPA).
That included:
- Reciprocal duties (broad additional tariffs on many countries)
- Country-specific increases (China, Mexico, Canada, India, etc.)
- Some emergency-related tariff increases
Basically, duties went up quickly and were applied very broadly.
These tariffs were in addition to:
- Section 301 (China tariffs)
- Section 232 (steel, aluminum, etc.)
The Supreme Court’s decision on tariffs
This year, as we all know, there was a “big change”. The U.S. Supreme Court ruled that IEEPA does NOT give the President authority to impose tariffs.
In simple terms:
- Those emergency / reciprocal tariffs were not legally authorized.
- CBP stopped collecting them as of Feb. 24,2026.
- Now the “big question” is refunds.
But remember:
- Section 301 tariffs are still valid
- Section 232 tariffs are still valid
- The government may try using other trade laws going forward
So, tariffs didn’t disappear – just the IEEPA ones.
What does this mean for refunds (specifically for IEEPA and reciprocal duties)?
IF the Court fully approves refunds:
- Importers could be entitled to get back the IEEPA and reciprocal duties they paid.
- This could be a very large amount of money industry wide.
- But refunds will NOT be automatic.
Right now, there is NO Official decision or notice whether the refunds will be approved or not. So, we here at MTS Customs Brokerage will continue to monitor this and keep you informed.
We are waiting to see which direction the U.S. Supreme Court will rule on the duty refund status or if any actual decision will be made. What can importers do to prepare themselves IF duties are approved for refunds?
How should you be preparing ahead of further action?
1. Pull a full IEEPA duty report
- Identify all entries that paid:
- IEEPA tariffs
- Reciprocal duties
- Break it down by:
- Entry number
- Liquidation status
- Amount paid
We want to make sure we have the exact amount of duties paid.
2. Separate entries by status
- Unliquidated Entries
- These may be easier to correct using:
- Post Summary Corrections (PSC) (if refunds are approved)
- These may be easier to correct using:
- Liquidated Entries
- These will likely require:
- Protests (within 180 days of liquidation)
- Or possible litigation depending on guidance
- These will likely require:
Something we need to keep in mind if you miss protest deadlines: refund rights could be lost.
3. Make sure your ACH Refund process is active
- Refunds will most likely:
- Be processed electronically
- Go through CBP refund systems
If an importer doesn’t have ACH set up properly, refunds could be delayed. I would like to remind all importers that the U.S. Government’s Electronic ACH Refund system went into effect on February 6, 2026. If by now you are still not setup under the new Electronic ACH Refund system, I recommend you act on this immediately. So, If a duty is approved for a refund, this is one less step an importer needs to take at that time.
4. Keep all backup documentation
Have the following documentation ready:
- 7501 copies
- Duty breakdown
- Proof of payment
- Broker payment confirmations
If CBP audits refund claims, you’ll need clean records.
What comes next
As I mentioned, we are all waiting to see which direction the U.S. Supreme Court, and other courts, will take on the duty refund status and if any. We will monitor court decisions daily to see what updates may be issued in the upcoming days.
Aside from the hottest question of will duties be refunded, I want to share the upcoming tariff changes this year.
What we are monitoring:
- Possible replacement tariffs under other trade authorities
- One most recent tariff that took effect on Feb. 24, 2026, was “Section 122 at 10%” which is effective for 150 days with rules/regulations implemented under the new HTS(s)
- Adjustments to Section 301
- Expansion of Section 232
- Political response to the Court’s decision
The bottom line
Expect volatility, expect new rules to replace old ones, and stay flexible. Stay tuned for more updates from MTS Customs Brokerage on the forever changing rules and regulations in the tariff world.
