Client Alert
Evan Z. Reid
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The Supreme Court has ruled in Learning Resources, Inc. v. Trump that President Trump’s tariffs enacted under the International Emergency Economic Powers Act (“IEEPA”) are illegal. In early 2025, the President imposed a 25% duty on most Canadian and Mexican imports and a 10% duty on most Chinese imports. The President also imposed a duty “on all imports from all trading partners” of at least 10%, with dozens of nations facing higher rates. Since imposing each set of tariffs, the President has issued several increases, reductions, and other modifications. All these IEEPA tariffs have now been struck down.
The Court did not, however, specify any remedy, including the possibility of providing refunds to the firms that had paid the tariffs. Justice Kavanaugh in his dissent says, "The United States may be required to refund billions of dollars to importers who paid the IEEPA tariffs, even though some importers may have already passed on costs to consumers or others." He goes on to say that this process “is likely to be a mess.” Business leaders and groups have already issued calls to the administration to automatically refund tariffs already paid, but in the absence of action by either the administration or Congress or both, it will fall to the U.S. Court of International Trade to fashion a remedy. Some large companies filed suit in the CIT anticipating this ruling, expressing concerns that if their tariff payments became liquidated (which occurs approximately 314 days after entry) it would become harder to recoup tariff payments. In response, the administration promised not to object to reliquidation if it were needed to process refunds and the CIT said that it would hold the administration to that promise.
In his first comments on the opinion, President Trump said that the question of whether refunds should be paid will have to be litigated. We will monitor all aspects of this emerging situation and will provide appropriate updates.

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