Background
On September 9, 2025, the U.S. Supreme Court announced it will hear two cases challenging the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). These cases could have significant implications for the President’s authority to impose broad tariffs by executive order and for the treatment of duties paid by U.S. importers.
The two cases under review are:
- Learning Resources, Inc. et al. v. Trump, President of U.S., et al. (No. 24-1287)
- Trump, President of U.S., et al. v. V.O.S. Selections, Inc., et al. (No. 25-250)
The Court has fast-tracked the proceedings, with briefs due by October 30 and oral arguments set for the first week of November 2025.
The cases focus on whether the 1977 IEEPA law permits the President to impose tariffs as a national emergency response. Two categories of tariffs are under review:
- Trafficking Tariffs – targeting goods from Canada, China, and Mexico over fentanyl enforcement concerns.
- Reciprocal Tariffs – imposing minimum tariffs of 10% to 50% on imports from nearly all countries.
Lower courts have issued split rulings, with some finding these tariffs exceeded presidential authority under IEEPA.
Implications For Importers
The Supreme Court’s ruling could confirm, narrow, or overturn the President’s tariff powers under IEEPA. This outcome may affect the validity of duties paid under these programs and could open the door to refund opportunities if certain tariffs are ultimately found unlawful.
For companies currently paying IEEPA-based tariffs, it is important to:
- Track all duties paid under both trafficking and reciprocal tariffs
- Maintain proper entry documentation and HTSUS classifications
- Evaluate exposure for potential recovery if court decisions alter tariff enforcement
Duty Drawback and Potential Refunds
At present, duty drawback remains available for IEEPA-related tariffs, as there is no statutory bar to claiming refunds on re-exported or destroyed goods. Importers should consider maximizing drawback claims now while monitoring the Supreme Court outcome, which could further expand refund eligibility if tariffs are struck down.
Next Steps
- Monitor the Supreme Court proceedings in November 2025
- Review existing duty payments tied to IEEPA tariffs
- Engage drawback specialists to ensure eligibility for refunds
J.M. Rodgers: Monitoring Legal and Trade Policy Developments
J.M. Rodgers continues to track legal challenges to U.S. tariff policy and supports clients in minimizing costs through compliance and drawback recovery programs.
