The Supreme Court just changed the game for every business that pays tariffs.

On Feb. 20, 2026, judges declared that the tariffs were beyond what Congress allowed the president to do under a law passed in 1977. What happens now? Companies are pondering their next move.

Here’s the thing…

Did your company pay tariffs under IEEPA? You may be eligible for a refund. However, you must hurry, and you must file correctly.

Let’s jump in!

Here’s what’s covered:

• What The Supreme Court Tariff Ruling Means
• Why Presidential Tariff Authority Was Limited
• 5x Legal Steps Companies Should Take Now
• Common Refund Process Mistakes To Avoid

What The Supreme Court Tariff Ruling Means

The ruling was huge.

By a vote of 6-3, the Supreme Court ruled today that the president cannot impose tariffs on imports using the International Emergency Economic Powers Act (IEEPA). The court ruled that IEEPA, the law under which the “fentanyl” tariffs and “reciprocal” tariffs were imposed, did not give the president unlimited power.

Why does this matter for your company?

There’s billions of dollars at stake. Over 330,000 importers are believed to have paid duties on more than 53 million shipments worth about $166 billion combined, according to court documents. Billions of dollars of tariffs paid that companies could try to get refunded.

But it’s not as simple as just waiting for a check in the mail.

The ruling did not provide guidance on refund procedures – that issue is left up to the lower courts and CBP. If you want to know how the impact of the supreme court tariff ruling affects presidential tariff authority and your business, you must understand what legal remedies are available.

The good news?

The best time for importers to act to preserve their right to refund is now. The worst time? Wait until it’s too late.

Why Presidential Tariff Authority Was Limited

The Supreme Court’s reasoning was actually pretty simple…

Chief Justice Roberts noted the elephant in the room. Between IEEPA’s passage in 1977 and 2025, no president had ever used the statute to authorize tariffs.

Not one. Not ever.

Fast forward to when the current administration tried to use IEEPA to levy blanket tariffs against Canada, Mexico, China, and other trade partners — the court ruled against them.

The court’s logic worked like this:

• IEEPA gives the President authority to “regulate” imports
• It does NOT mention tariffs or duties anywhere
• Congress alone holds the constitutional power to impose taxes and tariffs
• A President cannot just invent that authority from vague words

Pretty clear cut, right?

The President’s tariff authority has been severely restricted by emergency powers statutes. Your business is better insulated than ever from arbitrary, unilateral tariff increases.

But here’s where things get interesting…

The administration already has OTHER authorities (Section 122 of the Trade Act of 1974) to levy new tariffs. So even though IEEPA tariffs are a thing of the past, the trade landscape continues to evolve.

5x Legal Steps Companies Should Take Now

Now to the legal steps your company should take…

These are the moves trade attorneys are advising clients to make today. Review each one and develop a strategy for your business.

Pull Your Complete Import Records

Your starting point is data — and lots of it.

You cannot expense what you cannot prove. So the first thing your business should do is gather all possible import documentation. This consists of:

• Entry numbers and dates
• Commercial invoices
• Proof of payment to CBP
• Customs broker records
• Liquidation dates and product classifications

Why is this big deal? Importers will have to prove they are entitled to a refund with a list of entry records and proof of payment.

Without proper documentation, your claim is dead on arrival.

File Protective Litigation In The CIT

This one is critical for companies with significant tariff exposure.

The Court of International Trade (CIT) has been deliberating on the form of refunds. There is a distinct possibility that some refunds will be paid exclusively to importers who have pursued certain legal remedies. To protect your rights, you may:

• File a summons under 28 U.S.C. § 1581(i)
• File an administrative protest under 19 U.S.C. § 1514

By filing, you have your “day in court”. Filing also preserves your opportunity to receive a court-ordered reliquidation if CBP’s reliquidation is less favorable.

Register For Electronic Refund Processing

Most companies overlook this step but it is so important…

CBP will only be sending refunds through Automated Clearing House (ACH). If your business has not completed the ACH refund registration process, you will NOT receive a refund — even if you are owed one.

Simple step. Complete dealbreaker if you skip it.

Review Supply Chain Contracts

Here’s something most business owners don’t think about right away.

Who keeps a tariff refund? You? Your customers? Your suppliers? It depends on your contracts. Review every supply chain contract for price adjustment clauses, tariff pass through provisions or refund sharing clauses.

You don’t want to win a refund fight only to have to pay up.

Monitor Section 122 And Other Tariff Authorities

Don’t celebrate too early…

Don’t think tariffs are over just because the IEEPA tariffs died. The administration has already acted to implement Section 122, Section 232, and Section 301 tariffs. Your company needs to be aware of new executive orders impacting imports, CBP guidance, and upcoming Section 122 litigation.

Staying ahead is way better than reacting after the fact.

Common Refund Process Mistakes To Avoid

The refund process is messy. Really messy.

CBP admitted that the number of refunds they had to process was “unprecedented.” Translation: delays, mistakes, and headaches are inevitable.

Popular filing errors include filing late for protective claims, expecting automatic refunds, missing the 180 day protest deadline, and lacking supporting documentation.

Don’t be that company.

Final Thoughts

The Supreme Court decision is excellent news for companies who paid IEEPA tariffs. Billions of dollars will now be available for recovery, and presidential tariff power has been significantly constrained.

But that recovery isn’t going to happen on autopilot. Your business needs to:

• Pull complete records of every affected import
• File protective litigation where dollar amounts justify it
• Register for ACH refund processing
• Review supply chain contracts for refund implications
• Monitor new tariff actions under other laws

Companies that move quickly will be in the best position once refunds begin to go out. Companies that delay will be lucky to get leftovers.

Consult with an experienced trade lawyer, gather your documents, and begin developing your refund strategy now.