ILLEGAL TARIFFS – Importers Should Consider Taking Immediate Action to Preserve Rights of Recovery

A recent decision by the Supreme Court of the United States in Learning Resources, Inc. v. Trump ruled that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unlawful. These measures affected imports from several trading partners, including Europe, Canada, Mexico, China, and numerous other countries.

As a result of the decision, the tariffs enacted under that authority have been struck down as unlawful. However, the Court did not establish a clear process for refunds, which was left to the U.S. Court of International Trade (“USCIT”) to determine, and it remains uncertain how any recovery mechanism will ultimately operate.

In the meantime, many companies have already begun pursuing claims in the USCIT to preserve their rights. Large importers including companies such as FedEx, Costco, Revlon, and L'Oréal have filed lawsuits seeking refunds of tariffs paid under the invalidated measures, and thousands of companies have filed similar actions before the USCIT. Judge Eaton, who sits on the bench of the USCIT, ruled on March 4, 2026 in response to one of these lawsuits, that the government must begin refunding more than $130 billion paid in Tariffs. However, the U.S. Government has already indicated that it would appeal.

Due to the near certain appeal and the administrative and financial difficulties the U.S. Government will have in refunding the illegal tariffs, we recommend that companies take immediate action to preserve its claim to refund. Companies may pay a further price by waiting to see if it will receive its refund automatically.

Companies should also be aware that tariff entries may become liquidated after a certain period, which may create additional procedural obstacles to recovering duties if no action is taken in time.

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We are closely monitoring these daily developments and are available to assist companies that may have been affected by these tariffs, including evaluating potential refund eligibility and supporting clients through the legal and administrative steps that may be required to pursue recovery. Please be advised that legal strategy and procedure evolves as new legal guidance is released.

Requests for information or insights on the issue discussed in this article may be addressed to antonio.valla@vallalaw.com and lisa.schachne@vallalaw.com. This article is for information purposes only and does not constitute legal advice. The information contained herein may be outdated or incomplete and shall in no way be taken as an indication of future results. The transmission of this article is not intended to create, nor does its receipt constitute, an attorney-client relationship between preparer and reader. You should not act on the information contained in this article without first seeking the advice of an attorney.