On February 20, 2026, the United States Supreme Court issued a landmark ruling in Learning Resources v. Trump regarding the President’s authority under the International Emergency Economic Powers Act (IEEPA). The Court determined that the tariffs imposed were improper and exceeded the President’s statutory authority.
This definitive ruling has created a significant recovery opportunity for U.S. commerce. It is estimated that up to $200 billion in tariffs already paid may be eligible for recovery. U.S. Customs and Border Protection (CBP) has specifically identified approximately $166 billion in potential refunds across more than 53 million entries, affecting at least 330,000 importers.
Background: The IEEPA Tariff Overreach
In 2025, the Administration invoked emergency powers under the IEEPA—a 1977 act intended to regulate economic transactions during “national emergencies”—to impose aggressive trade penalties. These actions have now been clarified as exceeding the authority granted by Congress.
The ruling impacts several Executive Orders (EOs) that have since been revoked:
- EO 14193: Northern Border / Illicit Drugs
- EO 14194: Southern Border Measures
- EO 14195: PRC Synthetic Opioid Supply Chain
- EO 14245: Venezuelan Oil Imports
- EO 14257: Reciprocal Trade Deficit Tariffs
- EO 14323: Brazil
- EO 14329: Russian Federation
Specifically, all IEEPA tariffs paid between February 4, 2025 (such as the “fentanyl” tariffs) and February 24, 2026 (including the “reciprocal” tariffs implemented in April 2025) are potentially eligible for refunds.
Does Your Business Qualify for a Refund?
Audet & Partners, LLP is actively representing businesses seeking to recover these illegal tariff payments. Your business may be eligible if you fall into either of these categories:
- Importers of Record: Any business that directly paid tariffs to U.S. Customs.
- Contract/Receipt Holders: Businesses that were not the importer of record but have proof (via contracts or receipts) that the tariff costs were “passed on” to them.
Technical Update: The ACE Refund Process
Due to the massive scale of these refunds, CBP has certified that manual processing is operationally impossible. Consequently, the Court of International Trade (CIT) has allowed CBP to develop a new administrative refund process via the Automated Commercial Environment (ACE).
Proposed Refund Steps in the ACE Portal:
- Declaration: The importer files a declaration in ACE listing all entries where IEEPA duties were paid.
- Validation: The system automatically validates entries and recalculates the duty owed (with applicable interest).
- Liquidation: The ACE system automatically finalizes and liquidates or reliquidates the entries.
- Payment: The Department of the Treasury issues refunds electronically.
CBP estimates this new “self-service” functionality will be ready for use by mid-April 2026. This process is intended to be available to all importers, regardless of whether they have already filed a lawsuit.
Why You Should Act Immediately
While an administrative process is being developed, significant legal windows remain active. Importers and businesses should not wait to protect their financial interests.
- Protect Against “Liquidation”: Filing a lawsuit in the CIT remains the most effective way to protect against the effects of “liquidated” tariffs, which could otherwise permanently prevent a refund.
- Statute of Limitations: Under the CIT’s “residual jurisdiction,” importers generally have two years from the time a cause of action accrued to file suit. However, the exact start date for this period has not yet been decided by the Court.
- Prepare Your Data: We recommend businesses begin preparing duty refund calculations immediately. Our team can assist you in navigating the Customs ACE portal to access all import data maintained by CBP.
Frequently Asked Questions:
On February 20, 2026, in the case of Learning Resources v. Trump, the Supreme Court ruled that the President exceeded his statutory authority under the International Emergency Economic Powers Act (IEEPA) when imposing certain tariffs. The Court determined these tariffs were improper, opening the door for businesses to seek refunds for billions of dollars in duties already paid.
-The ruling impacts IEEPA-based tariffs paid between February 4, 2025, and February 24, 2026. This includes:
-The 25% tariffs on imports from Canada and Mexico.
-The 10% tariff on imports from China.
-“Reciprocal” tariffs on imports from nearly every country implemented in April 2025.
-Tariffs related to specific Executive Orders (EOs) for Venezuela, Brazil, and the Russian Federation.
Your business may be eligible if it falls into one of two categories:
-Importer of Record: You directly paid the tariffs to U.S. Customs.
-Contract or Receipt Holder: You were not the importer of record but can provide proof (such as contracts or receipts) that the tariff costs were passed on to your business.
CBP is currently developing an administrative process through the Automated Commercial Environment (ACE) portal. This “self-service” functionality is expected to be ready by mid-April 2026. It will allow importers to file a declaration and automatically recalculate duties and interest owed
While the portal is a positive step, it is critical to act affirmatively to protect your legal rights:
-Prevent Liquidation: Filing a lawsuit in the U.S. Court of International Trade (CIT) is the most effective way to protect your business from “liquidated” entries, which could permanently bar you from receiving a refund.
-Statute of Limitations: Importers typically have two years from the time a cause of action accrues to file suit under the CIT’s residual jurisdiction. An attorney can ensure your claim is filed before any deadlines pass.
-Complex Data Requirements: We can assist you in navigating the ACE portal to correctly calculate and verify the refund amounts you are owed.
Consult with William M. Audet
To ensure your claim is filed correctly and that you receive the full refund, including interest, your business should retain experienced legal counsel. William M. Audet and the team at Audet & Partners, LLP, are prepared to guide your business through every stage of this recovery process.
We’d love to help you navigate this recovery process. Please take a moment to fill out the form on this page with your contact information; we will review your details and reach out to discuss how we can best support your business.
Professional Background: View Mr. Audet’s CV here. Experienced in AI litigation and intellectual property rights.
Lead Trial Attorney: William M. Audet
Email: waudet@audetlaw.com
Firm Phone: 800.965.1461