Latest Tariff Updates: Section 122 Ruling and IEEPA Refund Status
Published on by Lauren Huster in International Business, Tax Services
- The U.S. Court of International Trade ruled Section 122 tariffs unauthorized, but only companies involved in the filed cases are currently exempt from paying them.
- Importers must apply through the CAPE system to receive IEEPA tariff refunds, with more than $35 billion already processed and additional guidance expected soon.
We previously reported on the February 2026 ruling that found President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs unconstitutional. You can read our earlier blog on the issue on the initial impact of the Supreme Court tariff ruling here.
Section 122 tariffs
Following that ruling, President Trump imposed a 10% across-the-board tariff under Section 122 on imports between February 24, 2026, to July 24, 2026. The U.S. Court of International Trade (CIT) later ruled that these tariffs weren’t authorized by law. However, the court stopped short of issuing a nationwide injunction. As a result, only the parties involved in the filed cases are currently exempt from paying the Section 122 tariffs.
The Trump administration has appealed the CIT decision, and additional developments are expected. In the meantime, companies should evaluate whether filing a legal challenge may be beneficial in order to stop collecting Section 122 tariffs.
IEEPA tariff refunds
Since the ruling that IEEPA tariffs were unconstitutional, many taxpayers have been waiting for guidance on the refund process.
To help manage refunds, the Consolidated Administration and Processing of Entries (CAPE) system launched on April 20, 2026. The expectation is that importers will receive a single consolidated refund rather than separate refunds for each shipment.
According to Reuters, approximately $35.46 billion in refunds have already been processed, with more than $166 billion in tariffs and interest ultimately expected to be refunded.
U.S. Customs and Border Protection confirmed that refunds began processing in May 2026. Importers that haven’t yet applied for an IEEPA tariff refund through CAPE should do so as soon as possible, as refunds won’t be issued without an application.
Additional updates regarding the refund process are expected at the end of May.
More to come
Tariff policy continues to evolve rapidly, creating uncertainty for many businesses. Companies should review their specific fact patterns and evaluate what next steps may be appropriate based on the latest developments.
For importers, these developments may have significant cash flow, compliance, and planning implications. Businesses should monitor ongoing litigation closely and review whether refund opportunities, filing strategies, or supply chain adjustments could help minimize future tariff exposure.
We’ll continue sharing updates about the upcoming tariffs and provide perspective on accounting impacts. To stay informed, subscribe to receive our latest insights. As always, we’re here to help.
