A new court filing indicated the Trump administration could allow refunds for a broad range of tariffs collected under the International Emergency Economic Powers Act of 1977.
The filing focused on the distinction between liquidated and unliquidated tariffs, a legal issue that could affect whether importers recover duties that the Supreme Court later ruled unlawful when it struck down Trump’s blanket IEEPA tariffs in February.
Greg Husisian of Foley & Lardner said the administration’s amended order “effectively places the entire population of IEEPA entries within the Court’s refund framework.”
That could include tariffs in three categories: unliquidated entries, liquidated entries still within a protest window, and entries where liquidation has been deemed final.
In trade cases, liquidation is the final calculation of tariffs owed. It must occur within a year of importation and assessment of the duty, though it often happens after 10 to 11 months.
The liquidation question prompted some companies to file lawsuits as early as 2025, before the Supreme Court confirmed that tariff refunds would be available.
The government’s filing also said work continued on a four-step refund process that, once operating, could take about 45 days to review and process applications.
Trade lawyers said the filing suggested that refunds could extend to fully liquidated tariffs, though questions remain about how the process will be carried out.
Erik Smithweiss, a partner at GDLSK who represents clients seeking refunds, said the filing eased some concerns. “If the government were going to fight over that issue, I would have expected them to state as much in this filing,” he said.
He added that the filing “doesn’t preclude the Department of Justice from one day down the road saying ‘we’re not building this process, we don’t think it’s legally authorized,’ and force that issue to be litigated.”
