Your Manufacturing Shop Might Be Owed a Tariff Refund. Here Is How to Check.

On February 20, 2026, the Supreme Court ruled 6-3 in Learning Resources v. Trump that the International Emergency Economic Powers Act does not give the President authority to impose tariffs. The power to set tariffs belongs to Congress alone.

That single ruling invalidated both the “Reciprocal Tariffs” announced on Liberation Day and the fentanyl-related tariffs imposed on imports from China, Mexico, and Canada.

If your shop paid those tariffs on imported components, raw materials, or finished goods, you may be eligible for a refund. Here is what you need to know.

What the Ruling Actually Says

The court's majority opinion was direct. IEEPA grants the President broad emergency powers over international transactions, but tariffs are not transactions. They are taxes on imports. And the Constitution is clear: the power to tax belongs to Congress.

This is not a technicality. It is a structural ruling. The court did not say these specific tariffs were set too high or applied unfairly. It said the President never had the legal authority to impose them at all.

The Numbers Are Staggering

According to the Penn Wharton Budget Model, total tariff revenue collected under IEEPA authority is estimated between $175 and $179 billion. A federal judge has ordered refunds with interest, and that interest is accruing at approximately $650 million per month.

Over 2,000 lawsuits seeking refunds have already been filed. The large importers with in-house trade counsel moved immediately. They understand the process, they have customs brokers managing the paperwork, and they filed within weeks of the ruling.

Most small and mid-size manufacturers have not filed anything.

Why Small Manufacturers Are Being Left Behind

The information gap is real. Large companies have trade lawyers on retainer and customs brokers who flagged this ruling the day it was published. The refund process, while not simple, is well-understood by professionals who handle customs duties for a living.

Small manufacturers, the ones who paid $15,000 or $40,000 or $120,000 in IEEPA tariffs over the past year, often handled those costs as line items on their import invoices. They may not have tracked which tariffs fell under IEEPA authority versus Section 301 or Section 232. They may not even realize there is a distinction.

That distinction matters now. Only IEEPA-authorized tariffs were struck down. Section 232 tariffs on steel and aluminum (the original 25% duties) remain in effect. Section 301 tariffs on Chinese goods are a separate legal question.

If you are unsure which tariffs your shop paid, that is exactly the kind of question a customs broker or trade attorney can answer quickly.

What You Need to File a Refund Claim

The refund process goes through US Customs and Border Protection. Here is what you will need.

Your import records. Every shipment that entered the US through customs generated an entry summary (CBP Form 7501). This document shows the tariff classification, the duty rate applied, and the amount paid. If you used a customs broker for your imports, they have copies of these records.

Identification of IEEPA-specific duties. Not all tariffs you paid are refundable. Only the duties collected under IEEPA authority qualify. Your customs broker can identify which entries are eligible based on the tariff codes and the effective dates of the IEEPA executive orders.

A protest or lawsuit filing. Refund claims for customs duties are typically filed as protests under 19 USC 1514 within 180 days of the liquidation of the entry. For entries where that window has passed, the lawsuits currently making their way through the courts may provide an alternative path. This is where legal counsel becomes important.

Timing matters. Refund claims have filing deadlines. The 180-day protest window is firm. If your imports were recent, you may still be within the window. If they were earlier in 2025, the deadline may have passed for a standard protest, but the class-action lawsuits may cover your situation.

What to Do This Week

You do not need to hire a law firm today. But you should start with three steps.

Step 1: Pull your import records. If you imported any materials, components, or goods that were subject to the Reciprocal Tariffs or fentanyl-related tariffs, find those invoices and entry summaries. If your customs broker handled the imports, call them and ask for a summary of IEEPA-related duties paid.

Step 2: Talk to your customs broker. Ask them specifically: “Which of my import entries were subject to IEEPA tariffs, and am I eligible to file a protest or refund claim?” A good broker will know the answer quickly.

Step 3: Consult a trade attorney if the amounts are significant. If your shop paid $50,000 or more in IEEPA tariffs, it is worth a consultation with a trade attorney who specializes in customs law. Many are taking these cases on contingency because the legal question has already been decided by the Supreme Court.

Do not assume this does not apply to you because your shop is small. If you imported steel, aluminum components, electronics, chemicals, or any goods from countries targeted by the IEEPA orders, you paid these tariffs. The question is whether you file for a refund or leave that money on the table.

The Bigger Picture

The IEEPA ruling does not eliminate tariffs on imports. Section 232 duties on steel and aluminum remain. Section 301 duties on Chinese goods remain. Congress could pass new tariff legislation at any time.

But for the specific tariffs collected under IEEPA authority, the Supreme Court has spoken. That money was collected without legal authority. And the process to get it back has already begun.

The manufacturers who act on this information will recover costs that directly improve their margins. The ones who do not will wonder, a year from now, why they did not make a phone call.

Lead Megaphone helps small and mid-size manufacturers build sales pipelines and stay ahead of the shifts reshaping American manufacturing. If you want to know what is changing in your industry before it hits your bottom line, start a conversation with us.