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Tariff Refunds Stall as White House Turns to Section 122 and 301 After Supreme Court Rebuff

Importers now face a court-ordered refund process that CBP says it cannot yet execute.

Overview

  • The Supreme Court on Feb. 20 ruled 6–3 in Learning Resources v. Trump that IEEPA does not authorize tariffs, voiding 2025 duties that generated over $100 billion.
  • Judge Richard Eaton ordered refunds with interest estimated at about $650 million per month, but CBP says it is not able to comply and is building a web system expected to take at least 45 days.
  • The administration imposed a 10% global surcharge under Section 122 set to lapse on July 24, 2026 without congressional approval to extend it, and a states-led lawsuit is challenging the action in the CIT.
  • USTR launched expansive Section 301 investigations covering dozens of economies on issues from excess capacity to forced labor, with options expected before the Section 122 window closes.
  • More than 2,000 refund suits are pending in the CIT, and companies are being urged to map entry status, file protests where warranted, and align customs and transfer-pricing positions to manage tax exposure.