February 21, 2026
By: Roger Handberg and Julie Posteraro
On February 20, 2026, the U.S. Supreme Court released its much-anticipated decision in Learning Resources, Inc. v. Trump, President of the United States 607 U.S. __ (2026). It ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. The central holding is that tariffs are taxes. The power to tax is exclusively vested in Congress under Article I of the U.S. Constitution, and Congress did not grant the President the authority to impose tariffs through the passage of the IEEPA.
This decision opens the door for companies to seek a refund of tariffs they have paid.
What options are available to businesses seeking refunds?
There are a couple of possible options available to businesses.
If your company has electronically submitted an entry summary in the U.S. Customs and Border Protection’s (CBP) Automated Commercial Environment (ACE), you may be able to submit a Post Summary Correction. To be eligible, your entry summary must be paid and be in accepted status; it cannot be liquidated or under CBP review. A liquidation occurs when there has been a “final computation or ascertainment of the duties or drawback accruing on an entry.”
If the requirements are met, a business may submit a Post Summary Correction to correct the amount of tariffs that are due. The deadline to submit a Post Summary Correction is within 300 days from the date of entry and up to 15 days of the scheduled liquidation date, whichever date is earlier.
What if an entry has already been liquidated?
If an entry summary has already been liquidated, a business must turn to other remedies.
A company may file a protest by submitting a CBP Form 19. Although there is no statutory requirement to use that form, the CBP Form 19 provides instructions on what is required for the protest. A protest may be filed electronically using the ACE Protest module or by making a paper submission at the port where entry was made.
Time is of the essence. A protest must be filed within 180 days of:
1. the date of notice of liquidation or reliquidation; or
2. the date of the decision, involving neither a liquidation nor reliquidation, as to which the protest is made (e.g., the date of an exaction, the date of written notice excluding merchandise from entry or delivery, or demand for redelivery); or
3. a surety may file within 180 days after the date of mailing of notice of demand for payment against its bond.
Is litigation an option?
Another option is filing a lawsuit in the U.S. Court of International Trade. That court has exclusive jurisdiction over disputes about tariffs. Many companies have already filed such suits to preserve their ability to obtain a refund in the event of a favorable Supreme Court ruling.
With the recent Supreme Court ruling, this option is one other businesses should consider as they evaluate how to recover the tariffs they have paid.
What should businesses do now?
Business that have paid IEEPA tariffs should assess their exposure and available remedies as soon as possible to preserve their rights.
Questions?
Contact GrayRobinson Shareholders Roger Handberg and Julie Posteraro or a member of the Litigation Section.